Disclaimer: When you sell on eBay, you’re responsible for complying with all applicable tax laws. Please note that the export/import, customs and laws related to business and policies for cross border trade vary from country to country. As a seller, it is your responsibility to learn, understand and apply them in your eBay business dealing/transactions. It is important that you inform your buyers about the potential import charges, they may need to pay when they receive their items. You are responsible for paying all fees and taxes associated with using eBay Services as an eBay seller. For more information on eBay’s tax policy and your obligations, see our Tax policy and User Agreement.
Your tax-related responsibilities may include, among others:
Paying sales tax on eBay sales
Paying income tax on eBay sales
Informing overseas buyers about import charges
Ability to validate what tax was collected on sales transactions
Value added tax (VAT), known in some countries as a goods and services tax (GST), is an indirect tax that is imposed on any product sold or service provided. VAT is calculated based on the difference between the cost of the product and its price for a buyer.
Here are some things you should know if you sell products on eBay.
What are the VAT rates in different countries?
VAT rates vary from country to country. As of October 1, 2020, Hungary has the highest VAT rate at 27%, followed by Denmark, Norway, and Sweden at 25%. Standard tax rates range from 20% to 22%. 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. The lowest rates are set in Lebanon (11%), Switzerland (7.7%), Thailand (7%), and Singapore (7%).
Many countries impose this tax on overseas purchases, including items purchased on eBay. 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.
If you sell to:
EU Country
Purchases shipped to any of the EU countries are subject to VAT at different rates for each specific country. See the table below for some examples.
Reduced VAT Rates apply to goods in certain categories, such as books, magazines and food. A complete list of VAT rates applied in the member states of the EU can be found on the European Commission website.
As 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. The threshold may vary from 10 euros to 22 euros, depending on the EU country:
Bulgaria – 30 BGN (about €15.34)
Croatia – 160 HRK (about €20.85)
Cyprus – €17
Denmark – 80 DKK (approx. €10.75)
Hungary – 6,000 HUF (about €18.82)
Romania – €10.
Starting from 1 July 2021, current VAT exemption for imports of goods will be abolished and VAT will be imposed on all items, regardless of their value. 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;
- eBay will collect and remit VAT for imports of consignments up to a value of €150 shipped into the EU and sold to consumers.
- For goods where the seller is a non-EU business but the goods are already within the EU, eBay will collect and remit VAT on sales to consumers within EU countries, and from one EU country to another.
- The current distance selling thresholds for intra-EU cross-border supplies will be abolished.
All sellers with B2C accounts on regional sites (ebay.de, ebay.fr, ebay.it, etc.) will have to provide a gross price and separate VAT rate on their listings, so that eBay can determine the correct amount of VAT to collect from consumers.
EU sellers with an annual turnover of more than €10,000 for their complete intra-EU cross-border supplies will have to charge the VAT of the EU country of delivery.
Is VAT imposed on my eBay fees?
Depending on your country, the corresponding VAT rate can be applied to your eBay fees.
If you have questions about how to calculate VAT when selling on eBay, or whether paid VAT is deductible, please contact your tax advisor.
