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HMRC confirms online marketplaces are liable for VAT on UK-based goods sold by overseas sellers, regardless of value, and must ensure the seller is not UK-established at time of sale.
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Marketplaces must perform due diligence tailored to their size and risk systems to verify a seller’s UK establishment status and retain evidence of checks to demonstrate compliance to HMRC.
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Suggested verification steps include checking UK VAT registration, Companies House data, financial links to the UK, IP addresses, and other geolocation data; further checks are advised if seller status is unclear.
Source: regfollower.com
