Do I need to pay VAT on eBay UK? What information do I need to file?

As for domestic e-commerce, almost all e-commerce companies now have to pay taxes, which is an obligation as a citizen. As for cross-border e-commerce, many merchants still have a lot of confusion, such as whether eBay UK has to pay VAT?

1. Do I need to pay VAT?

It is understood that eBay has sent emails to some sellers to remind sellers on the UK site to pay VAT. Because eBay has cooperated with the UK tax authorities to crack down on illegal activities such as tax evasion by sellers on the eBay platform. In order to prevent tax evasion, eBay UK will punish those stores that do not comply with the platform rules, and in serious cases, the seller's account may be frozen. eBay stated that if you sell goods on eBay UK, you must comply with and fulfill your tax obligations.

First, the seller needs to provide an accurate and valid UK VAT tax number eBay account, fill in the company or individual name registered for the VAT number in the eBay account, and declare and pay taxes to the UK government HMRC on time.

Sellers can check their VAT number on the UK VAT tax certificate or the HMRC website. This number is generally composed of GB+9 Arabic numerals.

What materials do sellers need to prepare to register a VAT tax number for the UK site? The first is company materials, such as a business license (individual sellers do not need to provide it), followed by legal person materials, a copy of the ID card, the legal person's name, etc. Finally, any two of the legal person's household registration booklet, passport, marriage certificate, driver's license and other materials are required.

If an eBay seller exports goods from the UK and the total annual sales are greater than £85,000, they must register for a valid VAT number, fill in the VAT number when uploading listings on eBay, and declare VAT to HMRC. If the seller is not in the UK, but the goods are stored in the UK, they also need to register for a VAT number immediately. In addition, when the seller ships the inventory to other regions, they may also need to register and pay VAT in these countries.

2. VAT tax declaration information:

1. ActivityReport related data (this needs to be downloaded from the backend of Amazon UK and needs to be operated by the seller)

2. Orders generated from other sites, but the goods are flow transactions released by UK FBA

According to current laws, all merchants on eBay UK must pay VAT. Every merchant must operate legally in order to develop their store in the long run. Don't just focus on the immediate benefits. When declaring VAT, be sure to prepare the information in advance.