UK Business Groups Urge Treasury to Consult on Online VAT Reform and Marketplace Liability Rules

• A coalition of 18 business groups and tax experts has urged the UK Treasury to launch a formal consultation on online VAT reform.
• They argue current VAT rules are exploited by some overseas sellers on digital platforms, creating unfair competition and a VAT gap estimated at £700 million annually.
• The coalition proposes extending VAT marketplace liability to all eligible transactions to ensure fair competition for UK retailers.
• Concerns are raised about the administrative impact on small sellers, with suggestions for exemptions below the VAT registration threshold.
• The call for consultation comes amid wider scrutiny of the UK’s digital tax system, with industry groups seeking clarity and reform.

Source: finance.yahoo.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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