This article will provide information on changes to eBay processes for UK based Sellers and those listing on eBay UK, and what updates to expect in 2021. These changes are both related to standard eBay Terms and Conditions updates, and also due to trading implications from the UK's exit from the European Union (Brexit).
eBay has announced that as of January 1st there will be changes to how they manage certain aspects related to UK Seller listings. Included as part of this will be that as of March 1st, a VAT rate must be added to listing prices, and as such we recommend implementing this on all product prices as of now.
Below is a summary of those changes and what Sellers will be required to action:
1: As of January 1st, eBay will be legally required to begin collecting and remitting VAT for UK imports.
2: Listing on UK eBay sites (whether your store is based in the UK or otherwise) or any site within the EU marketplace, will be required to provide both gross prices as well as the applicable VAT rate used to calculate the gross price on all listings.
3: If sellers do not specify gross prices and VAT rates, eBay adjudge that the price provided is the net price, and will add VAT on the price displayed to buyers.
4: Sellers will now be recommended to update 2 additional fields within their listings (if these fields do not already include the information) which are the VAT percentage & item gross price.
5: As per the above, in the event the VAT field is empty, eBay will adjudge that the Item Price is net and will therefore add 20% to the listing price (this will be limited to a total basket value of up to £135.
6: Also as of, January 1st, 2021, eBay will collect and remit VAT for UK imports on all consignments with a value of up to £135. There will no longer be a VAT exemption for small consignments up to £15.
7: As of March 1st, eBay will initialize the ending of any listing(s) which do not provide the applicable VAT rate.
eBay provides an in-depth guide to all intended changes and updates, including those effective from January 1st, 2021, and further changes from March 1st and July 1st which are available here.
eBay also provide assistance regarding Paying Taxes on purchases which is available here.
For an overview of general aspects related to the changes specific to Brexit, please check these advisory guide.
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