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.
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:
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 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.
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.
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.
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.
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.
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
The only fees that are zero rated are postage services such as those from Packlink and Royal Mail.
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 also offered sellers the opportunity to purchase postage labels though eBay via their Online Potage portal.
Source: Royal Mail
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:
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