Are you a buyer looking for information about tax? Read our article about paying tax on your eBay purchases
Sellers' tax responsibilities
You are responsible for paying all fees and taxes associated with using eBay 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:
- Paying VAT on eBay selling fees
- Paying VAT on eBay sales
- Paying income tax on eBay sales
- Informing overseas buyers about import charges
Charging VAT on eBay sales
If you're based in the United Kingdom or in the European Union (EU), you may have to collect VAT on items you sell on eBay. If you're not sure whether this applies to your sales, visit one the following sites, or seek professional tax advice.
- UK: HM Revenue and Customs website
- EU: Taxation and Customs Union Business: VAT (or your local tax authority)
If you're required to charge VAT on your items, here's what you need to do:
- When you list items on eBay, include VAT in the price. You may not add VAT to the final price after a buyer has won or bought an item
- Pay the VAT to the relevant tax authority
eBay is responsible for collecting VAT on certain shipments within the EU and UK. Visit Your VAT obligations in the UK & EU - opens in new window or tab for detailed information about VAT requirements when selling to buyers in the UK and EU.
Paying income tax on eBay sales
By law, sellers have to declare and pay taxes on income earned from eBay sales. We recommend checking with a tax advisor to understand your responsibilities.
Informing overseas buyers about import charges
When you sell to buyers outside the UK, import charges – including taxes and customs fees – may apply for the country you're sending the item to. These charges are determined by the country you're sending the item to, and are usually based on the item's price, postage weight, dimensions and country of origin.
Some countries and jurisdictions require eBay to collect import tax from the buyer when they pay for their order. Consignments where eBay does not collect taxes may require buyers to pay additional import fees (e.g. VAT and duties) as part of clearing their parcel through customs, or when they receive their order.
European Union - Customs duty
A €3 customs duty may apply to items valued €150 or less sent from outside the European Union (EU) to EU addresses.
For eligible items sent from outside the EU to EU addresses through eBay managed shipping programmes such as eBay International Shipping and the eBay Global Shipping Programme, applicable import fees, including the €3 customs duty, are collected at checkout.
Sellers should note that eligible items sent by other shipping methods, depending on the shipping method utilised, may see the seller charged the €3 customs duty by the shipping provider prior to shipment or the buyer charged prior to delivery.
The customs duty applies per item type rather than per package. Multiples of the same item type are charged the duty once.
- Stationery: A notepad, a diary, and a calendar in a single parcel are counted as 3 distinct item types (total = €9 duty)
- Clothing: A t-shirt of cotton and a t-shirt of polyester in the same package are counted as 2 distinct item types (total = €6 duty)
- Clothing: Two cotton t-shirts of different colour and size in the same package are counted as 1 item type (total = €3 duty)
Tip
If your item's being sent using the Global Shipping Programme, eBay will inform the buyer about import charges and these will be included in the order total at checkout.
For further information on jurisdictions where eBay collects taxes, please see our Tax policy.