On July 1, 2021 new rules went into effect for goods imported into the the EU. These new rules affect US sellers sending goods to EU residents. If you are US-based, already a VAT-registered seller for the EU and plan to continue selling into EU countries, you will need to do the following:
- Provide VAT rates: when listing any item for sale in the EU, always provide the gross price and the VAT rate you used to calculate the gross price. Where eBay has to collect VAT on your sales to EU buyers, eBay will remove VAT based on the rate you provided and add VAT based on the delivery country of the goods. This ensures that we always display the correct VAT-inclusive price to EU buyers and that eBay doesn't collect VAT on an already VAT-inclusive price, which would make your listing uncompetitive. If you did not apply VAT or are not VAT registered, you can leave this field empty. Where eBay has to collect VAT, we will add this on top of your listing price.
- Share IOSS number for imports: where eBay has collected VAT on your shipment to the EU (up to a consignment value of €150 euro), always electronically share the eBay-provided Import One-Stop Shop (IOSS) number with your carrier. Otherwise, your buyers may have to pay VAT again on delivery.
If you are not registered for EU VAT but would like to begin selling into the EU, you should do the following:
- Get familiar with EU import VAT: if you are not registered for VAT, you do not need to add a VAT rate to your listings. Where eBay has to collect VAT, we will add VAT on top of your listing price for shipments into the EU with a consignment value up to €150.
- Share IOSS number for EU imports: where eBay has collected VAT on your shipment into the EU (up to a consignment value of €150), always electronically share the eBay-provided Import One-Stop Shop (IOSS) number with your carrier. Otherwise, your buyers may have to pay VAT again on delivery.
Here are a few additional but important notes:
- If you are VAT registered, it's mandatory that you display your VAT identification number on the eBay site in connection with your listings. This can be done by updating your business seller information page, which is further explained in the eBay Seller Centre.
- VAT rates differ by country and are based on the type of goods sold. The following links are great VAT rate resources:
- Where goods are imported into the EU, import VAT and, in certain cases, customs duty will apply. The VAT rate due at import will be the same rate as would be applied if the goods were supplied within the country of import.
Check out these handy resources on the subject:
- eBay Information on Your VAT Obligations (UK)
- eBay Information on VAT Obligations (US)
- General information on VAT
- VAT rates applied in the EU
- VAT changes for eCommerce from July 2021
- Member States of the EU
For a more detailed look at the new EU VAT rules for US sellers, click here to look at our detailed eBay Main Street EU VAT issue page.