30 April 2018
During April 2018, HMRC asked all online marketplaces operating in the UK to sign an agreement to help tackle online VAT fraud.
This agreement states that these online platforms have a responsibility to:
- Educate the sellers who use their online marketplaces in the UK, on their VAT obligations either by producing their own guidance or directing them to HMRC’s GOV.UK guidance which can be found here: https://www.gov.uk/guidance/vat-overseas-businesses-using-an-online-marketplace-to-sell-goods-in-the-uk.
- Implement a system in order to take immediate action when notified by HMRC that an online seller is not following VAT rules.
- Find a suitable and lawful way to provide HMRC with information about their sellers when and if requested.
HMRC will publish a list of the online marketplaces that sign this register and if any of these companies are found to be non-compliant, they will be removed from this list and could face the possibility of becoming jointly and severally liable for their sellers VAT debts.
Please click here for a published copy of this agreement. (https://www.gov.uk/government/publications/hmrc-and-online-marketplaces-agreement-to-promote-vat-compliance)
Find out more about VAT in United Kingdom