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:
- Accounting for VAT on eBay selling fees
- Accounting for 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 of the following sites, or seek professional tax advice.
- UK: HM Revenue and Customs website - opens in new window or tab
- EU: Taxation and Customs Union Business: VAT - opens in new window or tab (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 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. When eBay collects the VAT on the buyer's order, you don't have to account for VAT on the amount paid by the buyer, although you may still have other VAT obligations. Visit Your VAT obligations in the UK & EU 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 Ireland, 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.
Buyers are responsible for paying import charges. If you offer international postage, you should not include import charges in the item's postage price unless you offer a Delivered Duty Paid (DDP) postage service. If you offer a DDP service, all import charges payable to clear the goods into your buyer's country should be included. Make sure your listings clearly set out your shipping policies so buyers know what to expect.
For further information on jurisdictions where eBay collects taxes, please see our Tax policy.