- When selling via TikTok Shop in the UK (often through Shopify), TikTok is often the merchant of record, not the seller.
- As merchant of record, TikTok is responsible for charging, collecting, and reporting UK VAT to HMRC, and issues the customer invoice.
- The seller makes a B2B supply to TikTok, not a B2C sale to the UK customer, and should not charge UK VAT to the end customer on these transactions.
- Sellers must correctly account for this income in their records and avoid double-declaring VAT.
- Misunderstanding the merchant of record status can lead to VAT reporting errors.
Source: hellotax.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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