This article explains the changes in the EU and UK VAT regulation in July 2021. You will learn what actions you need to take in order to prepare yourself for the changes.
Topics in this article:
- Action needed - apply gross prices and provide VAT rate on your domestic items
- Action needed - ensure you are compliant with EU VAT requirements
- Action needed - VAT registration and more
- Need more information?
Here are some steps that will help you stay competitive in the UK or in the EU markets
This article includes crucial information for both UK and EU eBay. We’ve broken them down for you.
With the UK’s departure from the EU’s Customs Union and the EU VAT regime, sellers offering their products on the UK market must pay attention to VAT rates.
Additionally, from July 1, 2021, new VAT regulations will apply to all sellers who trade across borders or within the EU too.
Action needed - apply gross prices and provide VAT rate on your domestic items
We take your domestic items to list internationally. So when you use our service, you only need to update your domestic listings by providing GROSS PRICES and filling in your domestic VAT RATE.
When you use our service, you DO NOT need to update the VAT on international listings.
We’ll make sure the international listings are updated and compliant, and the local VAT rate is calculated thanks to an algorithm we are rolling out!
You may see the algorithm being rolled out gradually in the space of the next few days!
Please rest assured your items will stay compliant while we actively deploy solutions to ensure correct amounts of VAT are collected.
Note: If you do not include local VAT information on your domestic items, your international listings will be treated as having NET prices and a default VAT rate for the destination country will be added on top of the item price.
Action needed - ensure you are compliant with EU VAT requirements
At Webinterpret, we are not tax advisors and do not profess to be. However, we believe you would benefit from the above overview based on data we collected. Note that it cannot be taken as official advice and should not be treated as such.
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*DDP: Delivery duty paid
**DAP: Delivery at place
Action needed - VAT registration and more
Please bear in mind there might be other requirements you’d need to fulfill. For instance, If you sell goods in any EU country or in the UK, you may be required to register for Value Added Tax (VAT) and to collect VAT on your sales.
You will find some more information about all the requirements directly on the eBay pages.
Need more information?
We understand that VAT might be daunting or that you might feel overwhelmed with information.
We invite you to refer to the eBay pages to find out more about VAT requirements in the EU and the UK and how to update domestic listings.