Accounting Services for eBay Sellers in the UK

Expert Accountants for UK-Based and International eBay Sellers

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 offer accounting services crafted specifically for eBay sellers.

eBay VAT Dangers

Selling on eBay? Here's What UK & international sellers must know!

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.

Full VAT Compliance, No Headache

Stay 100% VAT Compliant with Sterling & Wells

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

We’ll register you when you hit the £90,000 turnover threshold, or act early if you're storing UK stock—especially if you're importing or dropshipping goods into the UK

VAT Invoicing & IOSS Management

Auto-generate compliant VAT invoices via eBay’s downloadable invoices feature—and keep clear records of imports under £135 and EU sales under the OSS scheme

Quarterly VAT Filings

We prepare and file your VAT returns on time, accurately handling both output VAT (sales) and input VAT (expenses and eBay fees)

Making Tax Digital Compliance

If you’re UK-based, we’ll align you with “Making Tax Digital” protocols, ensuring your eBay bookkeeping meets HMRC standards

Simplified Accounting

Integration with eBay plus Xero, QuickBooks, FreeAgent and apps like A2X allows for seamless automation, real-time reporting, and accurate bookkeeping

HMRC Representation

We act on your behalf during HMRC queries, audits, or marketplace enforcement actions—saving you valuable time and liability

Expertise You Can’t Get Anywhere Else

Our Approach

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 Team

Meet the Experts Devoted to Your Success

Meet the professionals who make your growth and success their number priority.

Raju Gajurel CEO

Peter Kyprianou Director of Client Services

Runal Bhattarai Director of Client Service

Sanjay Gautam Vice President

Take Advantage of What’s Free

Our eBooks

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.

Updates & Insights

Latest Blog

Dive into our latest articles on UK tax, accounting and more.

VAT Registration Requirements for Overseas E-commerce Sellers in the UK

With the rapid growth of cross-border e-commerce, more overseas businesses are entering the UK market…

VAT Registration and Compliance in United Kingdom

Value Added Tax (VAT) is a type of indirect tax that is applied at each…

Understanding VAT on Marketplace Fees: Amazon VAT, Shopify VAT, eBay VAT

VAT on UK Online Marketplace Fees: A Seller’s Guide for Amazon, eBay, and Shopify

If you're selling online through platforms like Amazon, eBay, or Shopify, it's important to understand…

Using Postponed VAT Accounting (PVA) as an Overseas Seller: How to Import into the UK Efficiently

Selling to UK customers via platforms like Amazon, Etsy, or eBay often involves importing stock…

Understanding VAT Disaggregation (Artificial Business Separation)

The VAT disaggregation or artificial separation of businesses to gain VAT advantages remains a critical…

Understanding UK VAT: Compulsory Registration and Deregistration

Value Added Tax (VAT) is an indirect tax that is charged throughout the supply chain,…

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.

Which software works best for eBay accounting?

We recommend Xero, QuickBooks or FreeAgent, often alongside an app like A2X to automate sales and payout matching.

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.