The UK tax authorities (HMRC) have confirmed that Amazon, eBay and Fruugo are the first online marketplaces to sign up to its e-commerce data exchange agreement.
During April 2018, HMRC asked all online marketplaces operating in the UK to sign an agreement to help tackle online VAT fraud. By signing this agreement these online platforms have agreed 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.
- 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.
Please click here for a published copy of this agreement.