VAT on eBay fees
How ProfitClerk handles the VAT or GST eBay charges on its fees: inside the fees or added on top, reclaimable or a cost, and which settings change it.
In the UK, the EU, Australia, New Zealand and Canada, eBay charges VAT or GST on its seller fees. ProfitClerk works out how much of your fees is VAT, and whether it is a cost to you, from two settings in Settings › Country and tax profile: your eBay account type and whether you are registered for VAT or GST.
The settings that matter
Open Settings and find Country and tax profile (owners only).
- Home country: VAT or GST on fees is only worked out for countries where eBay charges it. Somewhere else shows no VAT or GST figures.
- Registration: tick I am registered for VAT (or GST) and choose the scheme: Standard scheme, Flat Rate Scheme or Margin scheme (second-hand goods).
- eBay account type:
- Personal: eBay's fees include VAT
- Business: VAT is added on top of eBay's fees
- Press Save profile. Every report uses the new settings straight away.
The rate used is your country's standard rate, which ProfitClerk keeps up to date.
Inside the fees or on top
- Personal account: the fee eBay records already includes VAT. ProfitClerk works out the VAT inside it.
- Business account: eBay records the fee without VAT and charges the VAT on top. Your order profits use the fees as recorded, so that VAT is not in them.
A cost or reclaimable
- Registered on the standard or margin scheme: ProfitClerk treats VAT on fees as reclaimable, so it is not a cost to you.
- Not registered, or on the Flat Rate Scheme: it is treated as a real cost.
How this changes your figures
| Account | Reclaim? | Order profit | Profit and loss |
|---|---|---|---|
| Personal | No | Fees including VAT | Fees including VAT |
| Personal | Yes | Fees including VAT | Reclaimable VAT taken out |
| Business | Yes | Fees without VAT | Fees without VAT |
| Business | No | Fees without VAT | VAT you cannot reclaim added |
So order pages always show the fees as eBay recorded them, and the profit and loss shows what the fees really cost you. Its eBay fees line carries a note: Reclaimable VAT taken out or Includes VAT you cannot reclaim. The same applies to Promoted Listings and eBay shop and listing fees. Under Also in this period, a memo gives the VAT on eBay fees and ads, marked reclaimable or a cost to you.
In the fee breakdown report
Open Reports › Fee breakdown. When VAT on fees applies:
- A headline figure shows the VAT on fees for the period, with You reclaim this tax, so it is not a cost to you or You do not reclaim it (not registered, or on the Flat Rate Scheme), so it is a real cost.
- A note says whether your fees include VAT (personal account) or eBay adds it on top (business account).
- The table adds the VAT row, Fees excluding VAT and Fees including VAT, month by month.
If no VAT shows, the note tells you why, and owners get a Tax profile button to set it up. See The eBay fee breakdown report.
In the calculators
The free eBay fee calculator has an I am registered for VAT switch and a Scheme choice; the deal calculator has I reclaim the VAT on eBay's fees. Both show the VAT on fees in the breakdown. See The free eBay fee and deal calculators.
Accounting software
If you link Xero, QuickBooks or FreeAgent, the VAT on each payout's fees follows the tax rates in your own ledger, not ProfitClerk's settings.
Questions people ask
Do my eBay fees include VAT?
On a personal eBay account in a country where eBay charges VAT on fees, the fees you see include it. On a business account, eBay adds VAT on top of the fees. Choose which applies under eBay account type in your tax profile.
Can I reclaim the VAT on eBay fees?
That depends on your own VAT position, and ProfitClerk cannot decide it for you. In ProfitClerk, a seller registered for VAT on the standard or margin scheme is treated as reclaiming it; not registered or on the Flat Rate Scheme is treated as not. Check with your accountant or the official guidance.
Why does my order profit differ from my profit and loss?
Order profits use the fees exactly as eBay charged them. The profit and loss adjusts for VAT on fees: it takes reclaimable VAT out, or adds VAT on top that you cannot reclaim.
I don't see any VAT on fees. Why?
VAT or GST on fees only shows when your home country in the tax profile is one where eBay charges it. Set your home country under Settings › Country and tax profile.
Who can change these settings?
The workspace owner, under Settings › Country and tax profile.
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