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VAT on online sales

VAT on online sales

VAT on online Sales (Do i include non EU sales towards VAT threshold?). Im selling on eBay and my total sales are almost £77k- current VAT threshold, however my sales to EU (including UK) is only £30k a year. Im UK resident. Should i be worried about VAT registration????. Is anybody outthere who can help?


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04th Feb 2013 18:37

Sales of goods outside the EU are probably zero-rated, but these sales still count towards the threshold.

Also, is this you rolling turnover, on a month by month basis?

Just out of curiosity, what are you selling that is so popular to those outside the EU?!

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By videfa
to supremetwo
04th Feb 2013 18:57

Ebay sales

Thanks for the reply. Thats my annual turnover....Im selling clothing items. My understanding is that if i were selling everying to outside the EU i wont need to register for VAT as these are not vatable sales. Why would my sales to Outside EU matters now (if it just because i have made sales to EU as well??). Thanks. I would appreciate your response.

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to Portia Nina Levin
21st Dec 2013 16:54

Hi - I sent (second class) an item I sold on eBay on the 25th of nov. My buyer says that he has still not received the item. I do have a receipt with the buyer's surname and post code on as proof of postage but no tracking number as it was sent second class (as was stated on the listing). Does anybody know where I stand here? can anyone tel me about how to sell on ebay

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04th Feb 2013 20:34


Hi there

You would need to keep a rolling turnover calculation to check if any 12 months exceed the threshold.

Exports of goods outside the EU (with the proviso you have evidence of export, such as air waybill etc) are zero-rated supplies and this is a taxable supply in the same way as sales at 20% for registration purposes - the rate of tax is just zero.

So, in effect, the threshold is for both standard (20% rated) sales PLUS zero-rated sales.  For you, this is your UK/European plus outside EU sales.

Sales to EU countries are VATable at 20%, to private customers, as opposed to business buyers, UNTIL you hit a countries distance selling threshold, when you then have to register and charge the local VAT rate.  Most countries thresholds for this are either €35,000 or €100,000.


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04th Feb 2013 22:21

I you sold everything outside the EU the sales would be Zero rated and his would give rise to VAT registration if you exceeded the registration limit. However, HMRC on application can exempt a business from registration if they only make Zero rated sales. However, you would then need to weigh up how much VAT you would for go reclaiming on your purchases.

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