eBay will start charging VAT on European seller fees from 1 July, in accordance with European Union regulations.
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% in Denmark and Sweden, while Spain and Germany have it set at 16%. UK sellers will pay 17.5% on each fee.
The EU issued a directive last year requiring digital services to charge VAT and this applies to all eBay sellers who live in Europe.
eBay is also changing its fee structure and in some cases sellers' fee will be reduced.
Prices in the UK, however, will rise. For example, the insertion fee, including VAT, for a car will increase from £5 to £6 and for property listing from £30 to £35.
Gillian Law writes for IDG News Service