Key takeaways
- Since 1 August 2024, Amazon bills sellers established in the UK and eight EU countries from a local branch and charges local VAT on fees.
- eBay UK lists business seller fees before VAT and private seller fees including 20% VAT.
- VAT-registered sellers can reclaim fee VAT with a valid VAT invoice; services bought up to 6 months before UK registration also qualify.
- Fees billed from another country usually fall under the reverse charge: boxes 1, 4, 6 and 7 in the UK.
- Marketplaces collect VAT on sales only in set cases, such as low-value imports and overseas sellers' local stock.
- The UK plans to make marketplaces collect VAT for UK sellers too from October 2027, with a £90,000 per-platform threshold to be confirmed.
In short: Often, yes. Since August 2024, Amazon bills sellers established in the UK and eight EU countries from a local branch and adds local VAT. eBay shows business seller fees before VAT and private seller fees including 20% VAT. VAT-registered sellers can usually reclaim it with a valid invoice. Fees billed from abroad usually fall under the reverse charge.
Updated November 2026. We checked Amazon and eBay seller pages, HMRC guidance, European Commission guidance and the UK Budget 2026 documents in early November 2026.
Does Amazon charge VAT on seller fees?
Yes, if you are established in the UK or in one of eight EU countries. In those cases Amazon bills your fees from a local branch and adds local VAT.
Amazon announced the change to sellers in Seller Central. From 1 August 2024, Selling on Amazon, Fulfilment by Amazon and other seller services moved from Amazon Services Europe S.à r.l. to Amazon EU S.à r.l. (Amazon Seller Central announcement). Invoices now come from Amazon EU S.à r.l.
- Sellers established in the UK, Germany, France, Italy, Spain, the Netherlands, Poland, Belgium or Sweden are invoiced by the Amazon EU branch in their own country. Local VAT rules apply, so VAT is charged on the fees.
- Sellers established anywhere else are invoiced by the head office in Luxembourg. Amazon said there was no change to how VAT applies to their fees.
Amazon ties this to where your business is established, not to your VAT registration status. So a UK seller below the registration threshold should expect UK VAT on its fee invoices too. The safest check is your own invoice. Your monthly fee invoice in Seller Central shows the billing entity and whether VAT was charged. For more on how Amazon handles VAT for sellers, see our guide to Amazon VAT for sellers.
Does eBay charge VAT on seller fees?
Yes, for UK sellers. eBay UK lists business seller fees before VAT, and private seller fees already include VAT at 20%.
eBay's fee page for business sellers says all fees shown are exclusive of VAT (eBay UK business seller fees). Its fee page for private sellers says all fees shown include VAT at 20%, and VAT may be added to Promoted Listings fees (eBay UK private seller fees).
For a private seller, that VAT is a final cost. You can't reclaim it. For a VAT-registered business, it is input VAT that you can usually reclaim. eBay's public help pages don't name the eBay entity that bills fees. Check your monthly invoice for the supplier name and VAT number. You can find monthly invoices under Payments in Seller Hub or My eBay (eBay fees, credits and invoices).
Can I reclaim VAT on Amazon and eBay fees?
Yes, if you are VAT registered and hold a valid VAT invoice. If you are not registered, the VAT is a cost to you.
HMRC says you must have valid VAT invoices to reclaim VAT on business costs (GOV.UK: Reclaim VAT). Marketplace fees are a normal business cost for a seller. The reclaim goes in box 4 of your UK VAT return. The input side is explained in our post on input VAT and output VAT.
If you register later, you can go back a little. HMRC lets you reclaim VAT on services bought up to 6 months before registration. For goods you still hold, the limit is 4 years (GOV.UK: Reclaim VAT). Marketplace fees are services, so the 6-month limit applies.
When does the reverse charge apply to marketplace fees?
The reverse charge applies when a supplier in another country bills a VAT-registered business for services. You then account for the VAT yourself instead of paying it to the supplier.
UK rule. For business-to-business services, the place of supply is usually where the customer belongs. When a UK business receives such a service from an overseas supplier, it acts "as if you are both the supplier and the recipient" (HMRC VAT Notice 741A). On the VAT return you put the VAT in box 1, reclaim it in box 4 where allowed, and put the net value in boxes 6 and 7 (HMRC VAT Notice 700/12). For a fully taxable business, boxes 1 and 4 cancel out.
One trap: if you are not VAT registered, reverse-charge services you receive count toward the UK registration threshold (HMRC VAT Notice 741A).
EU rule. Under Article 196 of the VAT Directive, the business customer is liable for VAT when the place of supply is its own country and the supplier is not established there (European Commission). So an EU seller billed from another EU country should see a reverse-charge note on the invoice and self-account for the VAT. Read more in our reverse charge guide.
Since August 2024, most UK sellers on Amazon get a UK VAT invoice from the UK branch, not a reverse-charge invoice. Reverse charge is more likely if your fees come from a supplier based outside your country. Always follow what the invoice shows.
Which scenario applies to you?
Use this table as a quick guide, then confirm against your own invoices.
| Your situation | Who bills fees / VAT on fees | What you do |
|---|---|---|
| UK-established, UK VAT-registered seller on Amazon | Amazon EU S.à r.l. UK branch; UK VAT charged (since 1 August 2024) | Reclaim the VAT in box 4 with the fee invoice |
| UK-established seller on Amazon, not VAT registered | Same UK branch; UK VAT charged, based on where you are established | VAT is a cost; if you register, reclaim fee VAT from the last 6 months |
| Seller established in Germany, France, Italy, Spain, the Netherlands, Poland, Belgium or Sweden | Amazon EU branch in your country; local VAT charged | Reclaim on your local VAT return if registered |
| Seller established elsewhere (for example the US or China) | Amazon EU S.à r.l. head office, Luxembourg; Amazon says no change to VAT treatment | Check the invoice; if no VAT is charged and you are a business in a reverse-charge country, self-account where required |
| UK business seller on eBay | Fees listed before VAT; entity on your invoice | Reclaim any UK VAT shown with the invoice; reverse charge if billed from abroad without VAT |
| UK private seller on eBay | Fees include VAT at 20% | Nothing to reclaim |
| Overseas seller with stock in the UK | Fee VAT as shown on your invoice; the marketplace collects VAT on your UK sales | Check whether you must register in the UK; keep fee and sales records |
Who collects VAT on your sales: you or the marketplace?
For most UK and EU sellers selling from local stock, you still charge and report VAT on your own sales. The marketplace takes over only in set cases, mostly involving imports and overseas sellers.
UK today. Online marketplaces are liable for VAT on imported goods in consignments of £135 or less. They are also liable for goods of any value located in the UK at the point of sale when the seller is overseas (GOV.UK: online marketplaces). The overseas seller is treated as making a zero-rated supply to the marketplace. eBay confirms it collects VAT in these cases (eBay UK VAT obligations).
EU today. A marketplace is the deemed supplier for imported goods in consignments up to EUR 150. It is also the deemed supplier when a seller established outside the EU sells goods already in the EU to consumers (European Commission explanatory notes). eBay adds that for shipments into France it collects VAT on all goods, regardless of value (eBay UK VAT obligations).
UK from October 2027 (proposed). Budget 2026 on 28 October 2026 announced that marketplace liability will extend to UK-established businesses selling goods located in the UK (Budget 2026 OOTLAR, para 1.55). It covers UK VAT-registered sellers and other UK businesses above a sales threshold per platform, given as £90,000. Personal sales, second-hand goods and B2B sales are excluded. HMRC's policy paper says secondary legislation will set the threshold, the second-hand treatment and the exact start date (HMRC policy paper). This is not law yet. For the wider picture, read our introduction to marketplace VAT.
What should you do now?
Download your fee invoices each month and record them the same way every time.
- Download Amazon fee invoices. In Seller Central, find your monthly seller fee VAT invoices. Check the billing entity, its VAT number and whether VAT was charged.
- Download eBay invoices. Go to Payments in Seller Hub or My eBay and open your monthly invoices in the financial statements.
- Check your details. Make sure your business name, address and VAT number are correct in both accounts. Wrong details can make an invoice unusable.
- Sort each invoice. Is it local VAT (reclaim in box 4), a reverse-charge invoice (boxes 1, 4, 6 and 7), or VAT-inclusive with no right to reclaim?
- Record the net fee in box 7 and keep the invoice with your VAT records.
- Check your sales side. Confirm which sales the marketplace collects VAT on and keep them out of your own output VAT. Watch for the UK change planned for October 2027.
Amazon also offers paid VAT services for sellers; see our explainer on VAT Services on Amazon.
Sources
- Amazon Seller Central: Update to Amazon UK and EU agreements and VAT treatment
- eBay UK: Fees for business sellers
- eBay UK: Fees for private sellers
- eBay UK: Fees, credits and invoices overview
- eBay UK: Your VAT obligations in the UK and EU
- HMRC: Place of supply of services (VAT Notice 741A)
- HMRC: How to fill in and submit your VAT Return (VAT Notice 700/12)
- GOV.UK: Reclaim VAT on business expenses
- GOV.UK: VAT and overseas goods sold to customers in the UK using online marketplaces
- HM Treasury: Budget 2026 overview of tax legislation and rates
- HMRC: Extending VAT online marketplace liability
- European Commission: Persons liable for VAT
- European Commission: Explanatory notes on VAT e-commerce rules
How Taxually handles this
If you sell on Amazon or eBay in several countries, CrossTax handles VAT registration, VAT, OSS and IOSS returns and fiscal representation in the countries you sell into. It pulls sales data from marketplaces such as Amazon and eBay and checks it against 250+ validation rules before filing.
Related guides:
Frequently asked questions
Does Amazon charge VAT on seller fees in the UK?
Yes, for UK-established sellers. Since 1 August 2024, Amazon bills them from the UK branch of Amazon EU S.à r.l. and adds UK VAT. Check your fee invoice in Seller Central to confirm.
Do I pay VAT on Amazon fees if I am not VAT registered?
Amazon links the VAT treatment to where you are established, not to registration. A UK-established seller should expect UK VAT on fees. If you are not registered, you can't reclaim it. If you register later, you can reclaim VAT on services from the previous 6 months.
Does eBay charge VAT on fees for private sellers?
Yes. eBay UK says private seller fees include VAT at 20%. Private sellers can't reclaim this VAT.
Can I reclaim VAT on Amazon and eBay fees?
Yes, if you are VAT registered and hold a valid VAT invoice. UK sellers reclaim it in box 4 of the VAT return.
When does the reverse charge apply to marketplace fees?
When a supplier in another country bills your VAT-registered business for services. In the UK you report the VAT in box 1, reclaim it in box 4 and put the net value in boxes 6 and 7.
Does Amazon or eBay collect VAT on my sales?
Only in set cases. These include UK imports of £135 or less, EU imports up to EUR 150, and goods already in the UK or EU sold by overseas sellers. The UK plans to extend this to UK businesses from October 2027.
