- HMRC is requesting businesses registered for VAT at high-volume addresses to prove their establishment in the UK.
- A high-volume address is where multiple VAT-registered businesses list the same UK address as their principal place of business.
- This requirement is to ensure that online marketplaces accurately account for output tax.
- Online marketplaces are responsible for the output VAT from sales made by overseas traders on their platforms.
- Non Established Taxable Persons (NETPs) who incorporate in the UK and provide UK address details to marketplaces are exempt from these rules.
- HMRC is sending letters to all VAT registered businesses with a high-volume address, asking for evidence of their UK establishment.
- If a business fails to respond, HMRC will consider them a NETP and seek to recover VAT from the online marketplace.
- The specific evidence required to prove UK establishment will be outlined in the letter from HMRC.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "United Kingdom"
- HMRC Guidance: Refunds of UK VAT for non-UK businesses (VAT Notice 723A)
- New VAT Relief Announced for Business Donations of Surplus Goods to Charities from April 2026
- Tax Tribunal Rules Import VAT Not Deductible for Customer-Owned Goods Imported for Repair Services
- VAT Treatment of Goods and Services Within UK Warehousing and Fiscal Warehousing Regimes
- FTT Allows Athena Luxe’s Appeal: Harrods Invoices Valid, HMRC’s Louis Vuitton VAT Decision Flawed
