2. Home Page Links

Join our mailing list!
Enter your Email address in the box below:

Home > European Union Value Added Tax
Information regarding European Union Value Added Tax

The European Union has announced that imports to the European Union arriving on or after July 1st 2021 from non-EU retailers must register with the "Import One Stop Shop" (IOSS) and collect VAT, ranging from 17% to 27% depending on the country. Again, like the U.K., there is no exemption offered to small businesses with low annual sales to the EU.

The latest information I have can be found on the stamps.com web site:

We are advised that the new regulations affect deliveries arriving in Europe on or after July1st 2021. VAT is to be collected on the merchandise itself and on the shipping.

The good news is that as with my UK customers, I will be able to sell to my EU customers through eBay, and eBay will collect, account for and remit the VAT for me, and will save you any add on admin fees.

The process is as follows:

  1. 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 "Final Sale Fee". This fee should be for Product, Postage and VAT, but my site can only calculate on product. More on this in step 3 below.

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

  3. 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, Postage and VAT, and will be slightly more than my site calculated in step 1, as my site cannot include shipping or VAT in the calculation.

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

  5. 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. 6. For orders under €150, VAT will be collected from you by eBay, and paid by eBay to HMRC. For orders over €150, eBay will not collect VAT, you will be responsible for paying it.

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

  8. 8. I will then invoice and ship your order. As I do not collect the VAT, it will not show on your AHS invoice. The difference between what I invoice and what you paid on eBay will be the VAT.

The reason for the "eBay fee" is that eBay extracts a "Final Sale Fee" of 12.55% plus a $0.30 flat fee calculated on Product, Shipping, and Taxes (i.e. VAT). I am asking my EU 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 the EU, this is the best option available at this time.

Thanks !