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

Italian Government are Preparing for a No-Deal Brexit

Italian authorities have announced their plans ahead of the UK's possible no-deal Brexit departure.

Read more
Introduction of a U.S Consumption Tax Would Raise $3 Trillion

U.S. Consumption Tax of 5% could raise $3 trillion by 2028 says Congressional Budget Office.

Read more
EU Exit - Update from HMRC

HMRC outline important changes to customs procedures and VAT for UK-EU trade that will occur if the UK leaves the EU without a deal.

Read more