New rules introduced to tackle online VAT fraud
The government is taking steps forward to tackling the issue of unpaid tax from businesses when selling through online marketplaces.
The new rules place increased responsibility to the online marketplace owner, making them accountable for the unpaid tax accumulated by the online sellers utilising their platform. The regulations will apply to both UK sellers and those based overseas.
Pressure to tackle online VAT fraud
Mel Stride, Financial Secretary to the Treasury, said: ‘Whilst the honest majority pay what they owe, some businesses that sell goods online to UK shoppers are failing to pay the correct amount of VAT. We are clear that everyone must pay their fair share of tax, and tackling tax evasion in all its forms is a top priority for the government.’
What are the changes for online marketplaces?
- The online marketplace is responsible for removing any seller who fails to pay VAT from their sites
- If they are not removing the online marketplace becomes liable for the unpaid tax
- Online marketplaces are also required to ensure that sellers using their platforms display a valid VAT number
With the growing trend of businesses selling their services and products through online marketplaces only set to continue, the new regulations could be a real asset to the government tackling online VAT fraud.
How HJS can help
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