eBay VAT Fees for International Sellers (EU, UK and the rest of the world)

International sellers normally have a small disadvantage in terms of their eBay fees.  This is not because of any or eBay's policies, but instead because the home countries of those sellers have a VAT tax regime.

How does eBay calculate VAT on final value fees?

The way eBay calculates VAT on final value fees is first by applying the normal 10% rule of all your final sale prices.  The VAT is then taken as a percentage of that fee, based on your residence country.  Please find the full list of countries and their respective VAT rates below.

 

The formula for eBay final value fees to include VAT

Let's say you sold some eBay listings for a revenue total of $1000 last month.  The first part is easy, eBay will apply their normal 10% rate, and will bill you for $100 ($1000 x 0.10 = $100).

Thankfully, the VAT is only added based on the fee, and not on the whole revenue.  If you happen to live in the UK, you know your VAT rate is 20%.  And 20% of $100 is $20 ($100 x 0.20 = $20).

Therefore, the total eBay invoice will be for $120 ($100 final value fee + $20 VAT = $120).

 

The VAT is only a slight increase in your fees

Another way to look at the above UK seller example calculation is like this... the $120 fee of the $1000 revenue is 12%.  Compared to the original 10% eBay charges, that's not a big increase at all!  It's a disadvantage when competing with domestic sellers on eBay.com, but nothing disastrous.

 

Example eBay fees invoice with the VAT 

sell your old watch on eBay

Above is an example eBay invoice from an international seller.  If that seller was living in the US, her total amount would have been only $56.86.  However, her home country has a 20% VAT tax rate, and this brings her total eBay fees up to $68.23.

 

List of countries and their respective VAT tax rates 

 

CountryTax NameRate
Afghanistan VAT rates 10%
Albania VAT rates 20%
Algeria VAT rates 19%
Andorra VAT rates 4.5%
Angola VAT rates 10%
Anguilla VAT rates 0%
Argentina VAT rates 21%
Aruba VAT rates 3%
Australia GST rates 10%
Austria VAT rates 20%
Azerbaijan VAT rates 18%
Bahamas VAT rates 12%
Bahrain VAT rates 5%
Bangladesh VAT rates 15%
Barbados VAT rates 17.5%
Belarus VAT rates 20%
Belgium VAT rates 21%
Bermuda VAT rates 0%
Bolivia VAT rates 13%
Bosnia and Herzegovina VAT rates 17%
Brazil VAT rates 17%
Bulgaria VAT rates 20%
Canada GST, PST and QST rates 5-15% depending on Province
Cape Verde VAT rates 15%
Chile VAT rates 19%
China VAT rates 6%
Colombia VAT rates 19%
Cook Islands VAT rates 15%
Costa Rica VAT rates 13%
Croatia VAT rates 25%
Curacao Verde VAT rates 5%
Cyprus VAT rates 19%
Czech Republic VAT rates 21%
Denmark VAT rates 25%
Djibouti VAT rates 10%
Dominica VAT rates 15%
Dominican Republic VAT rates 18%
Ecuador VAT rates 12%
Egypt VAT rates 14%
Estonia VAT rates 20%
Ethiopia VAT rates 15%
Fiji VAT rates 9%
Finland VAT rates 24%
France VAT rates 20%
Germany VAT rates 19%
Ghana VAT rates 12%
Gibraltar VAT rates 0%
Greece VAT rates 24%
Guam VAT rates 2%
Guinea VAT rates 14%
Guyana VAT rates 18%
Honduras VAT rates 15%
Hungary VAT rates 27%
Iceland VAT rates 24%
India VAT rates 12%
Indonesia VAT rates 10%
Iran VAT rates 8%
Ireland VAT rates 23%
Israel VAT rates 17%
Italy VAT rates 22%
Japan Consumption Sales Tax 8%
Jersey VAT rates 5%
Jordan VAT rates 16%
Kazakhstan VAT rates 12%
Kenya VAT rates 16%
Kosovo VAT rates 18%
Kuwait VAT rates 0%
Kyrgyzstan VAT rates 12%
Latvia VAT rates 21%
Lebanon VAT rates 11%
Liberia GST rates 7%
Lithuania VAT rates 21%
Luxembourg VAT rates 17%
Macedonia VAT rates 18%
Madagascar VAT rates 20%
Malawi VAT rates 16.5%
Malaysia SST rates 6%
Malta VAT rates 18%
Mauritius VAT rates 15%
Mexico VAT rates 16%
Moldova VAT rates 20%
Monaco VAT rates 20%
Montenegro VAT rates 21%
Morocco VAT rates 20%
Namibia VAT rates 15%
Nepal VAT rates 15%
Netherlands VAT rates 21%
New Zealand GST rates 15%
Nigeria VAT rates 5%
Norway VAT rates 25%
Oman VAT rates 0%
Pakistan Sales Tax rates 17%
Panama VAT rates 7%
Paraguay VAT rates 10%
Peru VAT rates 18%
Philippines VAT rates 12%
Poland VAT rates 23%
Portugal VAT rates 23%
Puerto Rico VAT rates 11.5%
Qatar VAT rates 0%
Romania VAT rates 19%
Russian Federation VAT rates 20%
Sao Tome and Principe VAT rates 0%
Saudi Arabia VAT rates 5%
Serbia VAT rates 20%
Seychelles VAT rates 15%
Singapore GST rates 7%
Slovakia VAT rates 20%
Slovenia VAT rates 22%
South Africa VAT rates 15%
South Korea VAT rates 10%
South Sudan VAT rates 10%
Spain VAT rates 21%
Sri Lanka VAT rates 15%
St Lucia VAT rates 15%
Suriname Sales Tax rates 10%
Sweden VAT rates 25%
Switzerland VAT rates 7.7%
Taiwan VAT rates 5%
Tanzania VAT rates 18%
Thailand VAT rates 7%
Togo VAT rates 18%
Trinidad and Tobago VAT rates 12.5%
Tunisia VAT rates 19%
Turkey VAT rates 18%
Uganda VAT rates 18%
Ukraine VAT rates 20%
United Arab Emirates VAT rates 5%
United Kingdom VAT rates 20%
Uruguay VAT rates 22%
Uzbekistan VAT rates 20%
Vanuatu VAT rates 15%
Venezuela VAT rates 12%
Vietnam VAT rates 10%
Zambia VAT rates 16%
Zimbabwe VAT rates 15%

 

Is it possible to avoid paying VAT on eBay fees?

In theory, this is possible, but only for some select countries and depending on your local business registration.  You will not be able to stop paying the VAT taxes to eBay, but you may be able to collect those taxes back when you file for taxes.  In most cases, this is not worth doing, and will often result in more business costs than what you may ever receive back.

 

Conclusion

This should give you a good overview of what you will be paying in VAT taxes on your eBay final value fees.  It's worth noting that you will not have to do anything because eBay will automatically do the calculations on your behalf.  However, when getting into the eBay selling business, and if you're an international seller, then it is worth knowing this in advance and not be surprised later.



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