Budget 2016: online marketplaces must police traders | KPMG | UK

Budget 2016: VAT - online marketplaces must now police traders

Budget 2016: online marketplaces must police traders

Gary Harley comments on the measures to tackle VAT evasion by overseas sellers.


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Gary Harley, Head of Indirect Tax for KPMG UK, comments on the measures announced by the Chancellor today to tackle VAT evasion by overseas sellers:

“By potentially making online marketplaces jointly liable for traders evading VAT the Chancellor has taken strong action to protect UK retailers from being undercut by those not meeting their tax obligations. At the same time this measure puts a significant compliance burden on online marketplaces, which will now have to heavily police who is selling through their sites, or risk the consequences.

“Some marketplaces have already seen the direction of travel and have put in place processes to make it as easy and cost effective as possible for traders selling through them to comply with their VAT obligations and businesses are signing up to these. However, these new proposals would seem to go well beyond ‘best endeavours’ and require the marketplace to remove offending businesses who do not take steps to comply, preventing them from trading on their site until they meet their responsibilities.”


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