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UK VAT Information For US Sellers

August 2, 2021

Starting on January 1, 2021 the UK introduced legislation which shifts the responsibility for collecting Value Added Tax (VAT) for online purchases from sellers to marketplaces such as eBay in certain circumstances. These new rules affect US sellers shipping goods to UK residents. If you are US-Based, already a VAT-registered seller for the UK and plan to continuer seller into the UK, you will need to do the following:

  1. Provide VAT rates: when listing on any UK site, 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 UK buyers, eBay will add it to your listing price net of your indicated VAT rate. This ensures that we can always display the correct VAT-inclusive price to UK 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, you can leave this field empty. Where eBay has to collect VAT, we will add this on top of your listing price.
    1. Click here to learn more about the eBay VAT calculation methodology.
    2. Click here to update VAT rates on your listing.
  2. Share IOSS number for imports: where eBay has collected VAT on your shipment to the UK (up to a consignment value of £135), always electronically provide to your carrier the Import One-Stop Shop (IOSS) number provided by eBay. Otherwise, your buyers may have to pay VAT again on delivery.

If you are not registered for UK VAT but would like to begin selling to the UK, you should do the following:

  1. Get familiar with UK 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 UK with a consignment value up to £135
  2. Share IOSS number for UK imports: where eBay has collected VAT on your shipment into the UK (up to a consignment value of £135), always electronically provide to your carrier the Import One-Stop Shop (IOSS) number provided by eBay. Otherwise, your buyers may have to pay VAT again on delivery.

We realized VAT rules can be complicated. For a more detailed explanation of these new UK VAT rules, we highly suggest you visit our UK VAT for US Sellers page on our eBay Main Street website.