- HMRC is sending out letters to businesses involved in selling goods or services online
- The concern is businesses using a third party for payment processing and incurring charges
- HMRC wants to ensure businesses are recording the Gross Sales Value, not the value after deduction of payment processing fees
- This is important for VAT and Direct Tax purposes
- The Association of Taxation Technicians has shared a link to these letters
- Businesses should record sales income values correctly as the Gross Sales value, not the Net
- There are other VAT aspects to consider for businesses using payment processing providers
- HMRC is interested in businesses using these services and there may be potential enquiries from them.
Source: centurionvat.com
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.
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