UK to extend the scope of joint & several VAT liability for online marketplaces

30 November 2017

As announced in the October 2017 Autumn budget, from April 2018 legislation will be introduced that will extend the scope of the existing joint and several liability rules. This is to be able to hold online marketplaces (such as eBay, Amazon, Buy.com, Sears.com, etc.) jointly and severally liable for:

  • Any future VAT that a UK business selling goods via the online marketplace fails to account for, once they have been notified by HMRC
  • Any VAT that an overseas business selling goods via the online marketplace fails to account for where that online market place knew, or should have known, that the business should be VAT registered in the UK.


The UK government also announced that it would consider the introduction of a split payment system for e-commerce purchases, which would require the VAT element of any purchase to be paid directly to the UK tax authorities.

LATEST NEWS

Italy confirms bank guarantee requirements for VAT...

Italy recently published new regulations affecting non-EU resident companies engaging in intra-EU trade of goods to and from Italy. Businesses involved in...

SEE MORE
VAT news
LATEST NEWS

Slovakia considers lowering VAT Rates and expanding...

The Slovakian parliament is currently reviewing draft bills that will expand the list of goods eligible for the 5% reduced VAT rate to include additional food...

SEE MORE
VAT news
LATEST NEWS

UPDATE: Philippines implements VAT on e-services...

The Bureau of Internal Revenue (BIR) recently executed implementing regulations (Revenue Regulations 003-2025) which will introduce VAT on digital services...

SEE MORE
VAT news

Gated Content

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