UK considers shifting VAT collection to online marketplaces for UK-based businesses

30 June 2026

The UK tax authority, HMRC, has launched a consultation on a significant change to UK VAT rules which could make online marketplaces responsible for collecting and paying VAT on certain sales made by UK-based traders to consumers. The consultation opened on 23 June 2026 and closes on 18 August 2026.

The current marketplace rules make online marketplaces liable for VAT on certain sales made by non-UK suppliers through online marketplaces. HMRC is now considering extending these rules to UK sellers, with the aim of reducing VAT fraud.

The consultation also covers online food delivery platforms, meaning marketplace liability could extend beyond traditional e-commerce websites into the restaurant and takeaway sector.

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