Online auction site e-Bay will begin collecting Value Added Tax (VAT) from its users under new EU regulations to begin on July 1st.
Historically, e-Bay has not charged Value Added Tax (VAT) on its services.
The EU directive covering digital services compels e-Bay and other commercial sites to begin collecting VAT on all its seller fees, including insertion, feature, final value and subscription fees.
Under the EU regulations, it will apply the VAT rate applicable in a seller's country of residence, permanent address or establishment.
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Business sellers can register for a VAT exemption on submission of a valid VAT ID number, e-Bay said.