VAT News

HMRC reports increase in online seller registrations

Following changes brought in with the last UK Finance Act, HMRC have reported that 7185 online sellers based outside of the UK have registered for VAT this year, up to ten times more than in the previous year.

In order to level the playing field, new legislation was brought in this year which permits HMRC to direct overseas sellers to appoint local representatives or provide financial guarantees with the idea of ensuring compliance. Furthermore, HMRC now have the power to hold online platforms jointly liable for any unpaid VAT if overseas suppliers do not register for UK VAT.

It appears that the changes are having the desired effect, and this ensures that overseas sellers do not have an advantage over UK sellers by failing to register for, and charge, UK VAT.

Related articles

Why overlooking the VAT determination process is detrimental in the era of tax digitalisation

As tax moves into the digital world, hundreds of thousands of organisations across Europe will face substantial challenges when it comes to adhering to VAT.

Read more
Infringement Proceedings Brought Against Germany Over E-commerce VAT Rules

The European Commission decided to initiate formal infringement proceedings against Germany over section 22f & 25e of the German VAT Act.

Read more
HMRC Issue Letters on No-Deal Brexit Advice For UK Businesses Trading within the EU

HMRC letters to VAT-registered businesses trading with the EU explaining how to prepare for changes to customs, excise and VAT if the UK leaves the EU without a deal.

Read more