I think some people are getting confused on this eBay VAT. It is NOT against your products but against the fee you pay eBay. So it is not 50p on a £2.50 item. It affects business sellers who are not VAT registered only (and those flat rate) but paying VAT on a service is standard. You pay VAT on web site hosting, you pay VAT on blank substrates, you pay VAT on practically everything. For those that are VAT registered and are not flat-rate then you can claim it all back. For those flat-rate and non VAT registered then it is a hit but then again pre-2015 you use to pay VAT so it is only in the last couple of years things changed.