Managing VAT with eBay
VAT Rules
From 1 July 2021, sellers who reach the new threshold for distance sales of goods within the EU (EUR 10,000) must provide the VAT number of each EU country where they sell and ship on eBay or confirm their OSS registration.
VAT collection by eBay
Marketplaces are regarded (as of 1 July 2021), for VAT purposes, as having bought and sold the goods themselves. This applies to sales in the UK and the EU.
Therefore, each sale involves :
1) A VAT-free sale between the seller and the marketplace
2) A taxable sale between the marketplace and the individual customer, subject to VAT in the country of arrival.
It will then be up to the marketplace to collect, declare and pay VAT on behalf of sellers.
Merchants must therefore provide the VAT rate applied to their listings. eBay will automatically collect VAT where tax rules apply.
You can see whether eBay has collected VAT on orders on the order details page of your eBay account or in the Order Report, which contains additional columns.
For orders in which eBay has collected VAT, eBay issues an invoice to the buyer. The invoice includes the amount of VAT collected by eBay, which remits it to the relevant tax authorities.
eBay's VAT collection algorithm takes three elements into account:
- The country of the eBay account
- The country where the product is located (warehouse)
- The country of sale
More information on this topic can be found here:
Managing VAT on PrestaShop
PrestaShop considers the merchant to pay taxes in the consumer's country from the first euro. PrestaShop does not include a feature to track a country's sales threshold. If a merchant wishes to pay VAT in his own country for intra-community sales, it is therefore up to him, manually and on a country-by-country basis, to check that the threshold is not reached.
On PrestaShop, the price of products including VAT is calculated from the price excluding VAT.
Therefore, the price (net without tax) plus the VAT rate indicated for the product.
VAT management of the eBay2 module
For each product, the eBay2 module sends the price including VAT calculated by PrestaShop to the eBay marketplace.
From version 2.2.2, the eBay module can synchronise a different VAT percentage for each product. The percentage taken into account is the one specified in the 'Tax Rule' field on the product page.
The specified VAT rate will be associated with each eBay listing.