Weekly VAT Update – 15 August 2017
eBay has confirmed that it will start charging 20% VAT
In response to HMRC’s clampdown on unregistered online traders, eBay has confirmed that it will start charging VAT at 20% on its fees to businesses trading in the UK.
This will commence on 1 August 2017, following a restructuring by eBay which results in UK customers contracting with eBay in the UK, and not eBay Europe S.a.r.l in Luxembourg entity. Charities and other businesses that cannot recover all the VAT that they incur should ensure that they additional cost is factored into their business model.