Working with Business Features and VAT
In this section:
Value-Added Tax (VAT)
Business Features on German Sites
Value-Added Tax (VAT)
The following information applies to listings on VAT-enabled sites. On a VAT-enabled site, you can specify a VAT percent value for a listing. For information on which sites are VAT-enabled, see Business Feature Field Differences.
Business sellers in Germany (DE), Austria (AT), or Switzerland (CH) have additional business-to-business (B2B) options that are discussed in Business Features on German Sites.
Value-Added Tax (VAT) is a tax on services, including services provided by eBay. You should consult an independent tax advisor and/or a local tax authority to determine what laws and rules apply to you, including whether you should register for a VAT ID with eBay and whether, and how much, VAT must be charged on items you sell.
The VAT rate varies depending on where you reside (or have a permanent address or establishment). You, or the sellers who use your application, should ensure that the registration address you provide to eBay is correct, especially the country designation.
Note: In general, on VAT-enabled sites, the ListingFee value that results from listing an item is the gross amount, meaning it includes VAT. However, on the India site, the ListingFee value is the net amount, meaning it does not include VAT.
You can avoid paying VAT charges on your eBay fees by registering a valid VAT-ID with eBay. You are then VAT-exempt with respect to eBay and will not be required to pay VAT charges on your eBay fees. You are responsible for paying the required VAT taxes on the goods you sell.
Your VAT status—exempt or non-exempt—is recorded in the User.VATStatus property returned from several calls. Of particular interest are these two values from the
VATStatusCodeType code list:
VATTax—user is subject to VAT charges on eBay fees
VATExempt—user is registered with eBay as VAT exempt
The following calls retrieve information about a user's VAT status in the response object:
Advantages of Being VAT-exempt
As an eBay VAT-exempt seller, you have the following advantages:
- You do not pay VAT charges on your eBay fees.
- You can specify a VATPercent between zero and 30 percent for any item that you list on a VAT-enabled site. This VAT information is visible to potential buyers on the item's listing page.
- When you provide a VATPercent, you have the option of choosing an invoice template thatincludes the net price (the basic price without VAT), the VAT percent, the VAT amount, and the gross price (net price plus VAT).
Business Features on German Sites
eBay sites in Germany, Austria, and Switzerland offer German, Austrian, and Swiss users the option of being a business-to-business (B2B) seller who offers designated items, called Business Items, only to buyers who confirm that they are business users and are buying the item for business purposes. Private users—users who do not confirm that they represent businesses—cannot bid on business items.
To be a B2B seller, you must register a valid VAT-ID with eBay. (See VAT-exempt Sellers.)
Advantages of Being a B2B Seller
When you are a B2B seller listing a Business Item, a message appears at the bottom of the item's listing page requiring potential bidders to confirm that they are business buyers. Note that you are responsible for confirming a buyer's business status. eBay does not verify such declarations.
In addition, if you specify a VATPercent for an item, your VAT rate is displayed on the item's listing page and you can choose to create an invoice that displays net price, VAT rate, and gross price, in accordance with European law.
Adding a Business Item
To offer a B2B item, you must meet the following conditions:
- You are eBay VAT-exempt.
- You live in Germany, Austria or Switzerland.
- You are listing the item on a site in Germany, Austria or Switzerland.
- You are offering the item only in B2B-enabled categories.
To check whether a category is B2B-enabled, check the value of the Category.B2BVATEnabled property in the category data returned by GetCategories.
To list a business item using the AddItem:
- Use GetCategories to make sure the categories in which the item will be listed are B2B-enabled(i.e., Category.B2BVATEnabled returns true).
- Pass a value of true in the Item.VATDetails.BusinessSeller property. This means the seller declaresthat the seller represents a business.
- Pass a value of true in the Item.VATDetails.RestrictedToBusiness argument. This means the sellerrestricts the sale to another business user.
- (Optional) Specify a value between 0 and 30 percent in the Item.VATDetails.VATPercent propertyand include the VAT in the starting price (minimum bid). This displays VAT information in the item's shipping page and allows you to choose an invoice template that displays the net price, VAT rate and amount, and the gross price.
- Some countries require that you specify a return policy for any Buy It Now items.
Regardless of whether an item uses business features or not, eBay fees are charged on gross sales prices.
Usage of some business features is optional. For more information about eBay's business features, see the eBay online help:
Modifying Business Items
When revising or relisting an item that was previously listed as a business item, you do not need to supply values for the B2B properties (VATDetails.BusinessSeller, VATDetails.RestrictedToBusiness, or VATDetails.VATPercent) unless you want to modify their values.
An item will no longer be qualified as a business item (i.e., the listing will no longer qualify for business features and will be converted to a non-business listing) if any of the following conditions are true when the item is revised or relisted:
- The seller's country of residence has changed to an ineligible country.
- The seller has changed the categories of the item being re-listed to one or more that do notsupport business features.
- The seller sets either VATDetails.BusinessSeller or VATDetails.RestrictedToBusiness to false.
If an item was not qualified as a business item when originally listed, but meets the conditions specified under Adding a Business Item above when the item is revised or relisted, the seller can convert the item to a business item by specifying the B2B arguments.
Retrieving Information about Business Users and Items
Retrieve the item data with GetItem and examine the Item.VATDetails.RestrictedToBusiness property and the Item.VATDetails.VATPercent field to determine whether an item was listed as a business item and whether the seller chose to specify the VAT rate.
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