I have now paid double VAT on the same product.

Hi, I have just started dropshipping from AliExpress to the UK using ebay as a sales channel. When I buy from AliExpress I am charged 20% UK VAT at point of sale. Then when I make a sale on ebay I am charged another 20% VAT. I have now paid double VAT on the same product. Please can you advise me if I should be looking into not paying the VAT to Aliexpress or not paying the VAT to ebay. I am not VAT registered yet as I'm a new business.

Hi,

Please refer to the guidance on selling through an online marketplace, as there are multiple factors that need to be taken into account when determining where VAT is due. If goods are in the UK at point of sale, you can see guidance here:

Businesses selling goods in the UK using online marketplaces

If goods are overseas at point of sale, then the guidance is here:

VAT and overseas goods sold to customers in the UK using online marketplaces

If after reading the guidance you have further questions please contact our VAT team with full details of where goods are located when supplied so we can try and assist you further.

VAT: general enquiries

Thank you.