UK Plans Universal Deemed Supplier VAT Regime: Risks for Small Sellers, Prices, and Competition

• The UK is considering extending the Deemed Supplier VAT model to all online marketplace sellers, not just non-UK sellers.
• This would abolish the VAT threshold for marketplace sellers, forcing even micro-businesses and hobby sellers to charge VAT, threatening their viability.
• The changes could lead to higher prices, inflation, and increased compliance costs, especially for smaller sellers and platforms.
• Sellers may shift away from marketplaces to avoid VAT, undermining HMRC’s VAT collection strategy and reducing projected revenue.
• The proposal risks entrenching large platforms’ dominance, reducing competition and consumer choice, and shifting rather than simplifying VAT complexity.

Source: fiscal-requirements.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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