Guidance for Online Marketplace Operators: Determining Seller’s Establishment for VAT Liability

• Online marketplace operators must check if sellers are established outside the UK to determine VAT liability.
• Operators are liable for VAT on goods located in the UK at the point of sale and sold by overseas businesses.
• Reasonable steps must be taken to confirm a seller’s establishment outside the UK.
• Failure to apply VAT liability correctly may result in HMRC assessing the operator for outstanding VAT.
• Operators should decide on appropriate checks based on business size, internal systems, and case circumstances.
• Evidence of reasonable steps taken should be kept to demonstrate compliance.
• HMRC will review evidence to assess the adequacy and timeliness of checks performed.
• Examples of checks include verifying UK business presence, VAT registration, Companies House registration, director residency, financial information, and other relevant data.

Source: gov.uk

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.

---

---