Do you pay VAT on eBay fees?

Do you pay VAT on eBay fees?

If you're an eBay seller based in the UK and you want a conclusive answer to if you are paying VAT on your eBay fees then you've come to the right place...

DISCLAIMER

We are not Tax Advisors and so our advice and suggestions on the application of tax rules cannot be construed as tax advice. We highly recommend that users seek advice from qualified accountants for their tax compliance.

Which eBay fees incur 20% VAT?

There are various different types of eBay fees. The truth is that most of them (but not all of them) incur 20% VAT if you're a UK established seller.

If you're using eBay Managed Payments then the following fees apply:

Listing fees - VAT rate: 20%

After you've used your monthly allocation of 1,000 free listings (or more if you have an eBay Shop), you'll be charged 35p for each new listing created.

Final value fees - VAT rate: 20%

Final value fees are calculated as 12.8% of the total amount of the sale (which includes the item price, postage, taxes and any other applicable fees), plus a fixed charge of 30p per order.

Fees for optional listing upgrades - VAT rate: 20%

Reserve Prices, Adding a Buy it now Price, Subtitles, Gallery Plus, Listing in 2 categories, Scheduler, International Site Visibility, Special durations are all examples of optional listing upgrades.

Fees for Basic eBay Shops - VAT rate: 20%

For a monthly cost of £19.99, in addition to the 1,000 free listings, you'll receive an extra 100 free listings a month which include the Special duration listing upgrade. After that, the listing fee is 35p per listing.

Dispute fee - VAT rate: 20%

When you are found responsible for a chargeback or other disputed amount as per eBay's policies, we charge a £16.80 dispute fee for each dispute.

International fee - VAT rate: 20%

If your registered address is in the UK, eBay charge an international fee when the delivery address for the item (entered by the buyer during checkout) is outside the UK.

Seller currency conversion charge - VAT rate: 20%

When you create listings or sell items on an international eBay site, eBay may convert your funds to a different currency in order to collect amounts owed by you to eBay, or to payout funds due to you. They charge a 2.5% fee for doing so.

Source: eBay

Which eBay fees are zero rated?

The only fees that are zero rated are postage services such as those from Packlink and Royal Mail.

Packlink - VAT rate: 0%

eBay Delivery powered by Packlink is a platform that allows UK sellers to purchase Delivery labels at competitive rates. Packlink uses DHL, DPD, UPS, Hermes and InPost as their preferred carriers.

Source: Packlink

Royal Mail - VAT rate: 0%

Royal Mail also offered sellers the opportunity to purchase postage labels though eBay via their Online Potage portal.

Source: Royal Mail

How can I check what I have been charged?

On your monthly eBay fees VAT invoice you will see a full breakdown of all the fee types you have been charged during that month. At the bottom will be a breakdown of the total taxable fees and total non-taxable fees:

Automating your eBay seller bookkeeping

If you want to join thousands of sellers who are automating their eBay and Amazon seller bookkeeping then you should check out Link My Books.

Link My Books hooks up directly with your eBay account and accounting software like Xero or QuickBooks. It automates all your bookkeeping by creating a summary for each eBay payout with all sales, refunds, fees and VAT correctly broken down and accounted for.

So one less task for you to do each month. Try Link My Books for free today.

About the author

Dan Little
Dan Little
Co-Founder and CEO of Link My Books located in Newcastle, United Kingdom.
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