New Reporting Rules for Digital Platforms: Impact on Sellers and VAT Compliance

• Platform Operators (PO) will have additional reporting requirements for sellers using their platform
• The regulations came into force on January 1, 2024
• The first reporting period is the year ending December 31, 2024
• Reports must be submitted to HMRC by January 31, 2025
• The aim is to improve tax compliance for sellers using digital platforms
• Relevant services include rental of property, personal services, and rental of means of transport
• Examples of personal services include transport services, delivery of goods or services, online services, freelance work, and provision of labor
• Failure to report can result in penalties
• These reporting requirements are not directly VAT related
• They align with the OECD’s Model Reporting Rules for Digital Platforms
• Indirect taxes, such as VAT, will be impacted by this project
• Smaller businesses and individuals operating through platforms may be affected first
• POs must accurately collect, store, and submit the required data to HMRC.

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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