HMRC calls on online marketplaces to sign agreement tackling VAT fraud in the UK

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)

LATEST NEWS

Sri Lanka defers non‑resident VAT on B2C...

Sri Lanka’s Inland Revenue Department (IRD) has announced a further deferral of VAT on digital services supplied through electronic platforms by...

SEE MORE
VAT news
LATEST NEWS

Germany provides further guidance on how e-invoicing...

The German Ministry of Finance (Bundesministerium der Finanzen, BMF) has updated the e‑invoicing frequently asked questions on its website. The updated FAQs...

SEE MORE
VAT news
LATEST NEWS

Slovakia proposing to extend domestic reverse charge...

Slovakia is considering expanding its domestic “reverse charge” VAT rules to certain higher risk services. The sectors reported to be in scope include IT...

SEE MORE
VAT news

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.