The UK has introduced new regulations making Online Marketplaces (OMP) liable for VAT payments and reporting in certain situations.
According to the new rules, which take effect from 1 January 2021, OMPs will be liable for VAT payments on the sale of the following goods sold through the OMP:
- Goods delivered from inventory stored outside the UK with a value of up to £135, and
- Goods of any value delivered from inventory stored in the UK, where the seller is not established in the UK
The new rules place additional obligations on online marketplaces. However, it is still advisable for businesses selling goods via those OMPs to register for VAT in the UK. We take a look at why.
Source: vatglobal.com
