What eBay tells HMRC: DAC7, Making Tax Digital and marketplace VAT

Check whether eBay reports your sales to HMRC under DAC7, when Making Tax Digital for Income Tax applies, and which VAT eBay already pays.

The Tax page in DashVue brings together three separate HMRC-related signals from your eBay sales: whether eBay is likely to report your figures under DAC7, whether your income is approaching the point where Making Tax Digital for Income Tax applies to you, and which of your orders already had VAT collected and paid by eBay so you don’t declare it again. This article explains what each panel shows, and what it doesn’t do.

Where to find these figures

All three panels live on the Tax page, built from your DashVue order data. To check your position:

  1. Open the Tax page in DashVue.
  2. Check the “What eBay reports to HMRC” panel for your DAC7 status this calendar year.
  3. Check the “Making Tax Digital for Income Tax” panel for your qualifying income against the phased thresholds.
  4. Check the “VAT eBay handled for you” card for any orders where eBay already collected and paid VAT.
  5. Keep the figures alongside your own records and confirm anything you’re unsure about with an accountant or HMRC directly.

These panels help you reconcile, they don’t file anything for you

All three panels are informational and reconciliation tools built from your DashVue order history. They don’t submit your DAC7 report (eBay does that), send your Making Tax Digital quarterly updates, or file your VAT return. Always confirm timing and figures with an accountant before you rely on them for a filing decision.

What eBay reports to HMRC: DAC7

Under DAC7, eBay has to share seller sales data with HMRC once you pass either of two thresholds in a calendar year (January to December): your gross sales reach roughly £1,700 (the approximate GBP equivalent of the €2,000 EU threshold, which moves with the exchange rate), or you complete 30 or more orders. Either one on its own is enough to trigger reporting.

DashVue’s panel tracks your gross sales and order count for the current calendar year against both thresholds and shows “Likely reported” once you cross either one, or “Below thresholds” if you haven’t yet. Being reported doesn’t create a new tax bill: it just means HMRC already has these numbers, so your Self Assessment figures should match them. eBay sends you a copy of what it reports, called a Digital Sales Reporting statement. Keep it and reconcile it against these figures.

Calendar year, not tax year

DAC7 reports run January to December, but your Self Assessment runs the UK tax year, 6 April to 5 April. The two totals won’t line up exactly. That mismatch is expected, not an error.

Making Tax Digital for Income Tax: when it starts for you

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is being phased in based on your “qualifying income”, meaning your gross self-employment and property income before expenses, not your profit. The phased thresholds are: £50,000 or more from April 2026, £30,000 or more from April 2027, and £20,000 or more from April 2028.

DashVue’s meter shows your qualifying income for the tax year against these bands, with a badge showing the earliest date MTD is due to apply to you, or “Not yet in scope” if you’re under £20,000. Once you’re over a threshold, you’ll need to keep digital records and send quarterly updates to HMRC. DashVue keeps your sales figures ready for that, but it doesn’t submit the quarterly updates or your Self Assessment for you: that’s still down to you or your accountant.

Qualifying income for MTD counts all of your self-employment and property income, not just your eBay sales. If you have other income streams, DashVue’s figure on its own won’t be your complete qualifying income. Confirm your actual position with an accountant before you plan around a start date.

VAT eBay already collects and pays on your behalf

On some sales, low-value imported goods and many sales to overseas buyers, eBay is treated as the deemed supplier for VAT and collects and pays that VAT to HMRC directly instead of you. DashVue’s “VAT eBay handled for you” card looks back over your recent order history (roughly the last 15 months) and flags any orders where this applies, plus other taxes such as overseas sales tax that eBay also handled.

The card shows “Excluded from your VAT” when it finds eBay-collected VAT, or “None found” if it doesn’t detect any in your recent orders. This VAT isn’t your output VAT and shouldn’t go in Box 1 of your own VAT return, and it isn’t income you keep. Your accountant may still want the figure for their records, since it appears on your eBay financial statements.

“None found” is a lookback, not a lifetime guarantee

“None found” means DashVue didn’t detect any eBay-collected VAT within its recent order lookback window, not that none exists anywhere in your selling history. Older orders outside that window aren’t checked here.

Keep an accountant in the loop

Use these panels to spot where you stand and to reconcile against eBay’s own statements, not as a substitute for professional advice. DAC7 reporting is done by eBay, Making Tax Digital submissions and Self Assessment filing are down to you or your accountant, and your VAT return remains your own responsibility. See the related articles below for more on your tax-year reports and VAT summary.

Last updated 2026-07-04.

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