Online Marketplaces Liable for VAT on Cross-Border Sales by Non-Resident Sellers

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.
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.
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.