The 17.5 per cent applies 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 identification numbers, and satisfy the other requirements of the business registration process, can register for a VAT exemption on fees if they submit a valid VAT ID number to eBay.
eBay to charge VAT from July
New European Union regulations regarding the collection of VAT on digital services mean that eBay will begin collecting VAT on seller fees from July 1.