Important changes in UK VAT obligations for eBay sellers

In this article you will learn about UK VAT regulations for eBay sellers which are a result of the agreement between eBay and HMRC. You will learn about who is affected by the changes and how to make sure you comply with them in time.

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Who is affected by the change to UK VAT regulations?

The new UK VAT changes concern sellers who surpass £85,000 in UK sales within a 12 month period. If you go over this threshold, you need to have a valid VAT ID within 30 days of surpassing the threshold.

A message from eBay will be sent to those who surpass the threshold and are expected to comply in the aforementioned timeframe.

How to comply with this change?

In order to prevent any impact to your eBay sales, you should always make sure that:

  • Your account details are up to date (check your registered addresses and any locations from which you ship your goods)

  • Your VAT ID details are valid (refer to this article from eBay for more information)

  • Your business name on your eBay account matches the company name on file with HMRC and Companies House (NOTE: updating your business name on eBay or Companies House may require extra payment verification and affect your payouts).

If your eBay name doesn’t match, you can easily update it: 

1. Log into your eBay account

2. Go to the Business Details section

3. Make the necessary changes to the company name.

What if I don’t comply? 

Failure to comply with this change in time will result in: 

1. The inability to list new items or revise existing listings.

2. Buyers not being able to purchase your existing items (listed both domestically and internationally).