Following a recent legal restructuring eBay business sellers are now liable to pay 20% standard rate VAT on fees to eBay UK rather than eBay Europe S.à r.l, their Luxembourg arm.  Those business sellers that are already VAT registered won’t have to worry as they will be able to reclaim this additional cost by using a tax credit.  However, it’s those business sellers that aren’t voluntarily VAT registered and fall short of the taxable turnover threshold (currently £85k) that will suffer as a result of this news.  Private and individual eBay sellers already incur 20% VAT on fees so this news won’t impact them.