Note that for shipments to France, eBay collects VAT on all goods imported regardless of value. eBay collects and remits VAT for imports of consignments up to a value of €150 shipped into the EU and sold to consumers.Other significant changes to how VAT is collected on imports into the EU, supplies within the EU by non-EU sellers, and cross border supplies by EU sellers include: Starting from 1 July 2021 previous VAT exemption for imports of goods has been abolished and VAT is imposed on all imported items, regardless of their value. The threshold may vary from 10 euros to 22 euros, depending on the EU country: ![]() A complete list of VAT rates applied in the member states of the EU can be found on the European Commission website.Īs of October 1, 2020, VAT is not due when the total value of all goods in a consignment (value not inclusive of customs duties or transport costs) is less than a threshold. Reduced VAT Rates apply to goods in certain categories, such as books, magazines, food. Whether the buyer will be required to pay VAT sometimes depends on the price of the order, the location of the item, and the final shipping address. Many countries impose this tax on overseas purchases, including items purchased on eBay. The lowest standard rates are set in Andorra (4.5%), United Arab Emirates (5%), Switzerland and Liechtenstein (7.7%). For example, 20% in Austria, Bulgaria, Estonia, France, Great Britain, Russia and Slovakia, and 21% in Belgium, Latvia, Lithuania, the Netherlands, Spain and the Czech Republic. In the EU, standard tax rates range from 17% to 27%. As of April 1, 2023, Hungary has the highest VAT rate at 27%, followed by Denmark, Norway, Croatia and Sweden at 25%. Provide eBay with your Value Added Tax ID number, and we’ll automatically add it to all your eligible new listings.For example in the UK, register with HM Revenue & Customs (HMRC), the UK’s tax authority. Register with the local tax authority in each country where you’ve determined you have a Value Added Tax obligation.It’s each seller’s responsibility to ensure they are Value Added Tax-compliant.Ĭomplete the following steps to ensure you are Value Added Tax-compliant and to avoid potential selling restrictions: Your business’s country of establishment.The key factors that determine if you have an obligation to register for Value Added Tax are: Whether you need to register for Value Added Tax depends on the way you conduct your business. Registering for Value Added Tax may help you do both those things. What are the VAT rates in different countries?ĮBay wants sellers to be successful and legally protected, wherever you do business. Here are some things you should know if you sell products on eBay. Speak with a tax advisor to better understand how Value Added Tax applies to your eBay business in the UK or EU and other countries outside the US. VAT should only be charged by a taxpayer who is VAT registered.įor example, any eBay seller making sales to DE buyers and fulfilling those orders from DE-based inventory may be required to register for DE VAT, and then charge and remit Value Added Tax on any deliveries made to DE addresses. ![]() ![]() In the EU, VAT is included as part of the prices charged to the buyer, and the seller then takes responsibility to remit the VAT to the tax authorities. Generally speaking, it’s a tax on the purchase of goods or services, and payable based on a percentage of the sales price paid by the buyer. Value Added Tax is similar to a sales tax. ![]() It’s an indirect tax that is imposed on any product sold or service provided. Value added tax (VAT) is also known in some countries as a goods and services tax (GST).
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