eBay UK/eBay IE Sellers: Changes to eBay's Structure in the EU, Effect on VAT

[mandy]

eBay UK announcement:

***Important News for ebay.co.uk Sellers -- Changes to eBay's Structure in the EU*** 


We would like to inform you of an important change to eBay's structure in the EU. 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 create a level playing field with all EU-based sellers becoming subject to the same rate of tax on their eBay selling fees – the Luxembourg VAT rate of 15%.

What will this change mean for me?
What this means for you depends on whether or not you have a valid VAT number issued to you by an EU government (most probably HMRC, or HM Revenue and Customs, in your case) and whether or not you have registered this VAT number with eBay.co.uk or another eBay site in the EU.

Find out more via our information page.
http://pages.ebay.co.uk/sell/vat/

For sellers who pay selling fees to eBay on a VAT-included basis (i.e. "gross"), 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. Please note that we will no longer be able to supply information as to how much VAT you have been charged.

Gross fees (i.e. including VAT) charged by eBay will not change as a result of the change to our VAT structure. Net fees will however be impacted. Please also note that we are making some fee adjustments at the same time.

Claiming back VAT
Some sellers, who have a valid VAT number but have not provided it to eBay, have been claiming VAT back from HMRC. Please note that as a result of this change, such sellers will no longer be able to do this. To be invoiced for eBay.co.uk fees "net" of VAT, all sellers will need to register for VAT-exempt status with eBay.co.uk (or another EU eBay site if applicable).

Please note: In order to register your VAT number with eBay.co.uk, you must be registered as a business seller.

Useful links
VAT Changes: Frequently Asked Questions
http://pages.ebay.co.uk/sell/VAT-faqs/
Register your VAT number on eBay.co.uk now
http://cgi1.ebay.co.uk/aw-cgi/eBayISAPI....isterVatId
Find out how to apply for a VAT number from HMRC
http://www.hmrc.gov.uk/
Fee changes – Information page
http://pages.ebay.co.uk/sell/importantinfo/

Thanks for your interest, and if you do have questions regarding any of the changes above, we would advise you to follow the links provided and read the full details on the web site.

Regards,
eBay International AG

eBay Ireland announcement:

***Important News for ebay.ie Sellers -- Changes to eBay's Structure in the EU*** 

We would like to inform you of an important change to eBay's structure in the EU. 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 create a level playing field with all EU-based sellers becoming subject to the same rate of tax on their eBay selling fees – the Luxembourg VAT rate of 15%.

What will this change mean for me?
What this means for you depends on whether or not you have a valid VAT number issued to you by an EU government (most probably The Irish Revenue Commissioners in your case) and whether or not you have registered this VAT number with eBay.ie or another eBay site in the EU.

Find out more via our information page.
http://pages.ebay.ie/sell/vat-ie/index.html

For sellers who pay selling fees to eBay on a VAT-included basis (i.e. "gross"), 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. Please note that we will no longer be able to supply information as to how much VAT you have been charged.

Gross fees (i.e. including VAT) charged by eBay will not change as a result of the change to our VAT structure. Net fees will however be impacted. Please also note that we are making some fee adjustments at the same time.

Claiming back VAT
Some sellers, who have a valid VAT number but have not provided it to eBay, have been claiming VAT back from The Irish Revenue Commissioners. Please note that as a result of this change, such sellers will no longer be able to do this. To be invoiced for eBay.ie fees "net" of VAT, all sellers will need to register for VAT-exempt status with eBay.ie (or another EU eBay site if applicable).

Please note: In order to register your VAT number with eBay.ie, you must be registered as a business seller. For Irish businesses, this registration has to be carried out over the phone with our dedicated customer support representatives, who will assist with registering both your business seller and/or VAT status. Find out about this process on our information page.

Useful links
VAT Changes: Frequently Asked Questions
http://pages.ebay.ie/sell/VAT-ie-faqs/index.html
Fee changes – Information page.
http://pages.ebay.ie/sell/importantinformation/

Thanks for your interest, and if you do have questions regarding any of the changes above, we would advise you to follow the links provided and read the full details on the web site.

Regards,
eBay International AG