Expert Accountants for eBay UK VAT
Whether you’re selling on eBay as a sole trader in the UK or selling through international dropshipping, understanding the tax, VAT, and marketplace-specific accounting challenges is essential. At Sterling & Wells, we are expert accountants for eBay VAT in UK for both national and international eBay sellers.

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Selling on eBay? Here's What UK & international sellers must know about eBay UK VAT!
Selling via eBay in the UK—whether as a domestic seller or an overseas dropshipper—puts you squarely in HMRC’s crosshairs. With evolving VAT rules, strict marketplace liability, and fierce enforcement, the risk of non-compliance is high.

HMRC marketplace reporting
Starting from early 2025, eBay will be reporting the seller income to HMRC. Sellers who have over 30 transactions or have a minimum of £1,700 annual income could see surprise notices or tax bills—even if VAT isn’t in play

Warnings and account suspensions
eBay routinely monitors the turnover and can issue a 30-day warning to the VAT-eligible sellers—failure to comply with these obligations can result in account suspension, sales loss, and even reputational damage.

VAT fraud by other sellers
HMRC estimates that billions are lost annually to VAT evasion on eBay. Fake UK-based foreign sellers can cause losses to honest businesses—and if detected, marketplaces face blame for not enforcing rules.
Stay 100% VAT Compliant with us - Accountants for eBay UK VAT
Whether you’re selling via eBay auctions, Buy It Now listings, or using a combination of both, UK VAT obligations can be complex and the mistakes can be quite costly. Sterling & Wells takes the stress out it .

VAT Threshold Monitoring

VAT Invoicing & IOSS Management

Quarterly VAT Filings

Making Tax Digital Compliance

Simplified Accounting

HMRC Representation
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Expertise You Can’t Get Anywhere Else
A team of Chartered Certified Accountants & Chartered Tax Advisors with a collective experience of over 20 years is just a phone call away. Get in touch and let us solve your problems.

Our Free E-book
Navigating the UK system from abroad can be challenging without the right resources. That is why we offer free eBooks packed all the knowledge you will need. They also include practical examples to enhance your understanding.
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Don’t wait for a penalty letter and stay one step ahead.
Ready to Take VAT Off Your Plate
Don’t wait for a penalty letter and stay one step ahead.
VAT doesn’t have to slow you down — not when you’ve got expert e-commerce accountants UK in your corner. From getting registered to filing flawlessly, we handle it all so you can focus on growing your e-commerce business.
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Frequently Asked Questions
Do I need to register for VAT if I store stock in the UK?
Yes—UK stock holdings (e.g. via eBay Fulfilment or third-party warehouses) usually trigger VAT obligations—even below the turnover threshold. Our team will assess your situation and recommend the best course of action.
Can I reclaim VAT on eBay fees and purchases?
Absolutely—once VAT-registered, you can reclaim VAT on eligible business expenses, including eBay and PayPal fees.
I operate part-time—am I still required to submit accounts?
Even casual sellers must file a self-assessment if yearly profits exceed £1,000. Selling for profit, even at low volumes, requires accurate tax reporting.
What happens if I go over the VAT threshold without registering?
If you exceed the £90,000 VAT threshold and fail to register on time, HMRC can issue penalties and charge VAT on your past sales—potentially cutting into your profits.