UK anti-VAT fraud split payments on e-commerce

30 March 2017

The UK government has announced that it will hold a public consultation relating to the introduction of an anti-VAT fraud spilt payment system.

This measure will apply to e-commerce sales made by non-established suppliers to consumers in the UK. If brought in, this will mean that the UK consumer purchasing the goods will be required to pay the VAT element of their purchase directly to HMRC. The net amount will then be paid to the supplier in the normal way.

It is hoped that this measure will help to eliminate the growing problem of VAT fraud by non-established online sellers who are charging the VAT on these sales, but are not remitting this to HMRC.

In 2016, the UK introduced a range of other measures to try to deal with the problem of non-EU sellers failing to VAT register and charge VAT. Read our article which details the changes in full here.

LATEST NEWS

Lithuania considers a standard VAT rate increase

Lithuania is currently considering whether to increase its standard VAT rate by 1% from 21% to 22%. This is being proposed to help meet additional military...

SEE MORE
VAT news
LATEST NEWS

Brazil to introduce indirect taxes on digital service...

From 2026, Brazil will introduce two new indirect taxes that will replace its old tax system. These two new taxes will work in a similar way to VAT and are...

SEE MORE
VAT news
LATEST NEWS

Ireland increases the VAT rate applied on...

The Irish government has confirmed that from 1 January 2026, the VAT rate will increase from 9% to the standard rate of 21% for: Accommodation...

SEE MORE
VAT news

Gated Content

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