EBay will start charging Value Added Tax (VAT) on European seller fees from July 1, in accordance with European Union regulations, the company has announced.
Unless sellers submit a valid VAT exemption number (available to registered businesses) they will be charged their national VAT rate. Rates vary from country to country. VAT is 25 per cent in Denmark and Sweden, while Spain and Germany have it set at 16 per cent. UK sellers will pay 17.5 per cent on each fee.
It is too soon to tell what effect this will have on eBay's business in Europe, Jennie Reed, eBay's UK marketing communications manager, said last week.
The EU issued a directive last year requiring digital services to charge VAT, effective from July 1, and this applies to all eBay sellers who live in Europe, she said.
EBay is also changing its fee structure and in some cases this will see sellers fees reduced, Reed said.
Prices in the UK, however, will rise. For example, the insertion fee, including VAT, for a car will increase from £5 ($AU13) to £6 and for real estate listing from £30 to £35.