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.

Also on KPMG.com

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.”

Ends

Follow us on twitter: @kpmguk #Budget2016

www.kpmg.com/UK/budget2016

For further information please contact:

KPMG Press office

Tel:  +44 (0) 207 694 8773

Zoe Sheppard, KPMG Corporate Communications

M: 07770737994

E: Zoe.Sheppard@KPMG.co.uk

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff.  The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.  

Budget 2016

Budget 2016

Expert insight and analysis of the Chancellor's 2016 Budget Statement.

Connect with us

 

Request for proposal

 

Submit

KPMG’s new-look website

KPMG’s new-look website