As announced in late March, eBay will begin collecting VAT on seller fees from European Union countries beginning July 1, 2003. VAT stands for value-added taxes, and new regulations in the European Union require the collection of VAT on digital services. The auction company will not collect VAT for members on the sale of their goods.

The taxes apply to all seller fees paid to eBay, including insertion fees, feature fees, final value fees and service subscription fees, by sellers who reside, have a permanent address, or are established in the European Union. Business sellers who have VAT ID numbers and satisfy the other requirements of the business registration process can register for a VAT exemption status on eBay fees.

At the same time, eBay is raising some fees, also effective on July 1. eBay advised members to consult the Announcement Boards on each EU site for more information about how VAT will be applied to eBay sellers in the EU. Links to pages on the UK site are listed below.

http://pages.ebay.co.uk/vat-landing/general

http://pages.ebay.co.uk/vat-landing/pricing