eBay is misinterpreting the €10,000 turnover threshold in the OSS procedure and thereby unlawfully blocking EU sales
Summary: apfeltasten is a business owner dealing with VAT issues related to eBay's interpretation of the 10,000 Euro threshold for the One-Stop-Shop (OSS) procedure. Despite staying below the threshold when VAT is deducted, eBay has blocked EU sales, assuming the threshold was exceeded. apfeltasten is frustrated with ineffective customer support, which lacks tax law expertise, and was advised to submit a confirmation letter that was subsequently ignored. marcels-modellbahn-welt provided details on relevant EU regulations, indicating eBay's misunderstanding of net vs. gross calculations. The discussion highlights the challenges in communicating this discrepancy with eBay's support system.
Basic information about my case:
I am a business owner subject to standard taxation. That means my invoices include VAT.
I sell exclusively EU-wide on eBay.
I have received emails from eBay saying that I am above the 10,000 euro threshold and that my listings will be blocked if I do not register for the OSS procedure.
The OSS procedure is not necessary if you are below 10,000 euros in EU sales. And I would like to make use of this exemption.
The relevant legal text for the EU-wide 10,000-euro threshold for the One-Stop-Shop (OSS) is in the German VAT Act in Section 3a para. 5 sentence 3 UStG.
It explicitly states that this threshold is calculated on the basis of the “total amount of consideration”. Since VAT law generally defines “consideration” as the net amount (that is, the value without VAT), this is by law a net threshold.
The fact that the consideration is the net amount follows from the legal definition in Section 10 para. 1 sentence 2 UStG, according to which the consideration is what the recipient spends, minus the VAT.
According to these two definitions, the 10,000 euro threshold is a net amount for every business subject to standard taxation.
My problem now is that in 2025 I demonstrably sold more than 10,000 euros EU-wide, but after deducting VAT I am well below 10,000 euros.
I understand that eBay is taking the easy way out and initially assuming 10,000 euros gross to protect itself, because it is not automatically clear whether you are a small business owner or not. But after clarifying it with customer service, the matter should be understood and adjusted accordingly.
Unfortunately, every contact with customer service about this topic has been absolutely terrible and shows a complete lack of competence. The so-called "expert team" has no idea about the tax law context mentioned above and insists that I am over 10,000 euros net. Which is simply not true.
At first, I was told to simply create a short confirmation letter that would release eBay from any review and place the responsibility on me to monitor the threshold myself. I submitted that letter and yet it is now being ignored.
I was also told to speak to my tax office and later to my tax advisor. First of all, I do not have a tax advisor, and in any case both the tax office and tax advisors follow the UStG (see above). So what exactly are they supposed to tell me? "Yes, you're right, eBay is interpreting this incorrectly in your case." And so I keep going in circles, because all I get from eBay are generic answers or the opinion of an "expert team" that does not know the UStG.
My questions:
Are there tax law specialists in the "expert team", or are they just "regular" employees?
If they are tax law specialists, I would like to speak to someone by phone.
Is there any hope at all for me that there will be a correct interpretation of the 10,000 euro threshold?
If not, would EU sales be released again from 2027 because I would then also be well below 10,000 euros (gross) in 2026 due to the suspension?
Thank you very much for your help!
@samantha@ebay @patrick@ebay <-- you two were very helpful in other OSS topics. Hence the tag in the hope that you can help me further with your internal knowledge.
apfeltasten
OP2 weeks agoI contacted customer service again yesterday.
Actually, I wanted to file a complaint under EU law (IBMS) against the relevant department / team of experts (experts at rejecting things, but not at tax law).
But that was just a sham as well, and I was forwarded to the same department and once again met with deaf ears.
The supervisor made the decision. When I then asked whether the supervisor had any knowledge of tax law, the answer was "No".
That already answers one of my questions. Then I don’t understand the ignorance, why, based on my explanations, evidence, and confirmation letters, no approval is granted.
marcels-modellbahn-welt
·2 weeks agoThe relevant EU directive, on the basis of which this was implemented into national law (UStG), even explicitly refers to a total amount excluding VAT:
Since the eBay system has, as is well known, never been tailored either to small businesses or to margin scheme users, eBay naturally has a problem recording the correct net turnover. On top of that, under normal taxation some products (e.g. books) are subject to a reduced VAT rate. Some products are also completely exempt from VAT (e.g. investment gold).
In my view, eBay should record total amounts as follows:
Normal taxation with 19% or 7%
The net amount including shipping should be recorded, i.e. VAT should be deducted — the respective VAT value is already stored at eBay.
Small business scheme (§ 19 UStG) or VAT-exempt goods
Basically the same as above, except that here, in effect, net = gross.
Margin scheme (§ 25a UStG)
Users of the margin scheme are expressly exempt from the EU's OSS bureaucratic harassment (§ 25a para. 7 no. 3 UStG). Accordingly, no total amounts at all are to be aggregated by eBay for margin scheme users. So far, in practice, this looks like eBay does it anyway and then sends margin scheme sellers the notice once the €10k threshold is exceeded, with more than 20 emails for each eBay platform in the EU separately. You can then get the standard explanation template for the margin scheme again via eBay support and the forum here, which you then have to send to eBay. If you're unlucky, you then get the unprofessional remark from some interns or trainees at eBay support that you just need to tick the box for "OSS" in the settings. After asking again, a lot of hassle, and a few days of patience, you are then reactivated for the entire EU, which of course again comes with 20+ emails. After 12 months, the whole game starts again, because there is of course the theoretical possibility that something may have changed with the seller in the meantime.
It could be so easy, with a corresponding option for margin scheme in the eBay listings or at least for the OSS nonsense in the eBay system.
apfeltasten
OP2 weeks agoYes, a precise review of the sales and derivation from the data in the eBay system would definitely be possible. I do at least state the tax rate for my products in every listing. From that, the net sales could be derived.
I basically understand eBay, that they first write to everyone who has exceeded 10,000 euros, to protect themselves. Because eBay is liable as a platform.
But then I still need to have the ability to be exempted quickly and easily via proof if the 10,000 threshold has not yet been exceeded.
The whole threshold is nonsense anyway. eBay can't check whether I sell on other platforms in the EU abroad.
That's why I actually think the confirmation letter that I signed is pretty good. Only the confirmation letter is ignored by customer service despite copy-paste instructions! Yes, you heard that right, their solution to me was that I should draft a confirmation letter, only to then ignore it! The department is an absolute joke!
marcels-modellbahn-welt
·yesterday at 3:15 AM@apfeltasten
Yes, I know that from margin taxation. See under the title "Margin taxation" in my previous post. Just send it again to eBay customer service and hope that this time a more competent employee gets their hands on the whole thing.
I’m just noticing this in the EU directive I mentioned: Did you perhaps exceed the 10,000 euro threshold last year?
voli-maus
·2 weeks agoHello @apfeltasten ,
samantha hasn't been around for a long time anymore.
patrick will probably be back next week.