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Home > United Kingdom Value Added Tax (VAT)
Information regarding United Kingdom Value Added Tax (VAT)

The United Kingdom (England, Wales, Scotland and Northern Ireland) now requires internationally based vendors to register with the Her Majesty's Revenue and Customs (HMRC) and to collect Value Added Tax (VAT). This requirement came into effect on January 1st 2021, and is part of the new regulations surrounding BREXIT. There is no exemption offered to small businesses with low annual sales to the U.K.

See https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk

If your order exceeds 135 GBP (approx $175 USD) before postage, VAT is collected from you upon delivery. Place your order, I will remove the "eBay Fee", "Capture" the remaining payment, and mail directly to you. Be aware, your customs service will still collect VAT, but will do so directly from you upon delivery. Additional processing charges may apply.

However for orders below 135 GBP (approx $175 USD) before postage, the new rules apply. I have found that I can fulfill these smaller orders for my UK customers through eBay, and eBay will collect, account for and remit the VAT for me.

The process is as follows:

1. You place your order on my site as normal. My site will estimate postage and a 10% "eBay Fee" to partially cover eBay's various fees. This eBay fee should be for product, postage and VAT, but my site can only calculate on product. More on this in step 3 below.

2. You can indicate "Mailing Cheque or Money Order" for payment. I will "VOID" any credit card or PayPal payment offered.

3. I will create a custom 'Buy it Now' item on eBay, which will be priced to include everything in your order plus the 10% "eBay Fee" mentioned in step 1. This Fee will be calculated on Product and Postage, and will be slightly more than my site calculated in step 1, as my site cannot include shipping or VAT in the calculation.

4. I will send you a link to your order via email.

5. You then "Buy it Now" through eBay. eBay will recalculate shipping, and experience shows it is usually about 8% less than what my site calculates. eBay will also calculate and add the VAT, giving you a final total.

6. You complete your purchase and payment on eBay. eBay will notify me once you have completed this step.

7. I will then invoice and ship your order. I do not collect the VAT, however it will show on your invoice as “Collected by eBay”.

Finally, The reason for the "eBay fee" is that eBay extracts a "Final Sale Fee" of 13.25% plus a 1.65% “International Fee” calculated on Product, Shipping, and Taxes (i.e. VAT), plus a flat $0.40 “Final Value Fee”. I am asking my UK customer to pay the first 10%, I will pay the rest.

This process has now been tested many times with several customers, and it has worked very smoothly. I share your dislike of having to jump through the eBay hoop, and the added expense involved, but as I have no desire to play "Tax Collector" for HMRC, this is the best option available at this time.

Thanks !