Since eBay moved all sellers to managed payments, buyers pay eBay, and eBay pays the seller’s bank account on a payout schedule. What reaches the bank is the result of sales, minus final value fees, per-order fees, promoted listing charges, refunds, postage labels bought on eBay and any funds on hold. Posting the payout as “sales” understates turnover and hides every cost.
The reports you need
From the Payments area of Seller Hub:
| Report | Use in the books |
|---|---|
| Transaction report | every order, refund, fee, label and adjustment, line by line |
| Payout report | which transactions make up each bank payout |
| Monthly fee invoice or statement | the fees and the VAT position for the month |
Download them for every month and keep them with the bank statements.
Using an eBay clearing account
Post everything through an eBay clearing account, which should return to nil once each payout is matched:
| Account | Debit | Credit |
|---|---|---|
| eBay clearing | £2,400 | |
| Sales | £2,000 | |
| Output VAT | £400 | |
| eBay fees | £300 | |
| Input VAT on fees (if charged) | £60 | |
| eBay clearing | £360 | |
| Postage costs (labels bought on eBay) | £80 | |
| eBay clearing | £80 | |
| Bank | £1,960 | |
| eBay clearing | £1,960 |
The example assumes a VAT-registered UK seller with UK stock. Sales to UK buyers by a UK-established seller are the seller’s own supplies, so the seller accounts for the output VAT.
VAT on eBay fees
Whether the fees carry UK VAT, are subject to the reverse charge or neither depends on which eBay entity invoices them and on the seller’s VAT status, which eBay records against the account. Use the monthly fee invoice to decide, rather than assuming; VAT on marketplace and payment fees explains the three possible treatments.
Sales where eBay collects the VAT
For some sales, eBay acts as the deemed supplier and collects the VAT itself, for example low-value goods imported into the UK, or UK stock sold by a seller established outside the UK. These sales appear in the reports with the VAT collected by eBay; the seller must not charge it again. See VAT on dropshipping and marketplaces.
Refunds, returns and holds
- Refunds reduce sales and output VAT in the period refunded; post the full gross refund, not the net effect on the payout.
- Return postage paid by the seller is a selling cost.
- Payment holds and reserves are still the seller’s money: keep them in the clearing account (or a separate “eBay funds held” account) until released, rather than writing them off.
Month-end routine
- Import or post the transaction report for the month.
- Match each payout in the bank to the payout report.
- Explain the clearing account balance: it should equal sales not yet paid out plus any funds held.
- Check that fee totals agree to the monthly fee invoice.
In Nexbal, these reports are the source for the postings and stay attached to them; sellers on several platforms should also read multi-channel e-commerce accounting.