- Call for Consultation: Bira, alongside 18 business organizations and tax experts, has written to the Exchequer Secretary urging a formal consultation on reforming VAT online marketplace liability rules to address unfair competition faced by compliant UK retailers.
- Exploitation of Current System: The coalition highlights that gaps in the current VAT system are being exploited by some overseas sellers, allowing them to avoid VAT and undercut honest British businesses, potentially costing the Exchequer around £700 million annually.
- Proposed Reforms: The letter advocates for extending VAT liability rules to hold online marketplaces responsible for VAT compliance, aiming to level the playing field for UK businesses while protecting tax revenues, with consideration for the impact on small sellers to avoid undue burdens.
Source bira.co.uk
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