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.

VAT-exempt Sellers

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:

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:

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:

To list a business item using the AddItem:

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:

Business Features

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:

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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