VAT payment guide for eBay sellers: detailed explanation in the UK and France

Sellers operating on the eBay platform usually face different tax requirements. Especially for Value Added Tax (VAT), the objects and methods of levying it vary depending on the country or region. This article will discuss in detail the VAT payment rules for eBay UK sellers and goods sold to France.

VAT obligations of sellers on eBay UK site

Effective July 1, 2021, the EU has canceled the VAT exemption policy for imported goods with a value not exceeding 22 euros. This means that all products imported into the EU are subject to VAT. For eBay UK sellers, whether they are local or non-local businesses, as long as their sales exceed 70,000 pounds, they must register a valid VAT number and upload it to the eBay system. In addition, when non-UK sellers store goods in the country, they also need to register a VAT number locally; if they transfer inventory to other countries, they need to complete the corresponding VAT registration process in the destination country.

In order to comply with relevant regulations, sellers on eBay UK site should first apply for a special tax number from the customs department. After completing the registration, the seller can enter the “VAT Settings” page through the “Seller Services” tab in the eBay account interface, enter the personal real name and the obtained VAT number, and save the settings.

Method for calculating VAT on goods sold to France

For items shipped directly to France from outside the EU, eBay will implement different VAT treatments based on the value of the items:

• For items worth up to €150: Sellers need to ensure that the package is accompanied by an IOSS (Import One Stop Shop) number provided by eBay.
• For goods worth more than 150 euros: The French VAT number should be indicated on the package.

Regardless of the value of the item, sellers must ensure that the correct eBay France VAT number is included in the customs clearance documents and that the logistics provider passes this information to customs. Otherwise, the buyer may need to pay VAT again.

If your seller is registered for VAT in France or another EU country, you can update your information on eBay through a specific link. For sellers who have not registered for VAT, there is no need to add tax rate information to their product listings.

Conclusion

To sum up, whether you are a seller on eBay UK site or a merchant selling products to the French market, it is important to understand and comply with local VAT regulations. This not only helps avoid potential legal risks, but is also one of the necessary conditions for the long-term development of the enterprise. By handling VAT correctly, sellers can ensure the legality of their business operations and provide customers with transparent pricing information.