Changes to eBay's structure in the EU

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Changes to eBay's structure in the EU

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We would like to inform you of an important change to eBay's EU structure. We have set up a new entity in the European Union, located in Luxembourg, called eBay Europe, S.à r.l. This entity will become the new contractual partner for all our EU-based members. This change will come into effect on March 1st, 2007.

This change will mean that all EU-based sellers are treated equally and are subject to the same rate of tax on their eBay selling fees - the Luxembourg VAT rate of 15%.

What does this mean in practice?
This means that all non-VAT registered sellers selling on eBay, and based in the European Union, will pay VAT on their seller fees at the Luxembourg rate of 15%.

If you do not have a VAT number, eBay will continue billing you for "gross" selling fees (i.e. including VAT). Gross fees will not be changing as a result of the change to our VAT structure. Therefore, the eBay.co.uk selling fees you pay will not change as a result. However, please note that we are making some fee changes at the same time (see below).

If you do have a VAT number but have not registered for VAT exempt status with an EU eBay site, we will continue treating you as a non-VAT registered seller, and continue invoicing you for your eBay.co.uk selling fees on a VAT-included basis.

Your invoice will no longer specify the amount of VAT you pay. Your invoice will state the total amount due (fees + VAT). This total will include VAT at the Luxembourg rate of 15%, where applicable.

Some sellers have been claiming VAT back from HMRC (HM Revenue & Customs) without registering their VAT number on eBay. These sellers will no longer be able to do this. To pay eBay fees net of VAT, all sellers will need to register their VAT number on an EU eBay site. In order to register your VAT number with eBay.co.uk, you must be registered as a business seller.

Find out full details of how this affects you on our information page.

Fee changes
We review our fees on an annual basis, to ensure we maintain a healthy and balanced marketplace. The changes we are making this year are designed to promote a greater volume of trade.

There will be changes to the following categories: Mobile and Home Phones (excluding the Mobile Phones with Contracts sub-category), Computing, Consumer Electronics and Photography (i.e. "Technology" products), Books, Music, TV, DVD & Film and Video Games (i.e. "Media" products) and certain of the vehicles categories on eBay Motors. There will also be a change around Reserve Fee refunds.

Please read the full changes on our information page.

Image source : pages.ebay.co.uk