eBay urges UK tax plan to spare small online sellers

In the forthcoming Budget, the chancellor plans to make online marketplaces liable for VAT on sales from all merchants whose yearly turnover exceeds £90,000, extending one outlet rule that only applies to overseas sellers. The policy is projected to generate up to £1 billion and ease business rates for brick-and-mortar high-street shops. Eve Williams, vice-president and general manager of eBay UK, said the change must safeguard small UK enterprises and that eBay has been discussing protective measures with the Treasury.

She warned that tight thresholds on VAT and other taxes can stifle growth for fledgling firms. Williams cited eBay’s report showing that most active small-business regions fall below the national average GDP per head, indicating untapped potential beyond traditional hotspots. She suggested raising the trading allowance to £3,000 and improving support for low-value imports to encourage entrepreneurship. The company urges ministers and regional leaders to place online small businesses at the core of growth strategies.