Summary
- HM Revenue & Customs has launched a consultation proposing to extend the existing online‑marketplace VAT liability—the “deemed supplier” provision—so that it also captures UK‑established businesses selling through marketplaces.
- Currently the deemed‑supplier rules mainly shift VAT collection responsibility to platforms for certain overseas sellers; the proposal would broaden that scope, making marketplaces accountable for VAT on a wider range of transactions, including those by domestic vendors.
- If adopted, the change would significantly reshape VAT collection responsibilities across the UK e‑commerce ecosystem, affecting platforms such as eBay UK and Amazon UK, their sellers and pricing models. Businesses trading via marketplaces should monitor the consultation closely, assess how expanded deemed‑supplier obligations could alter their VAT accounting, cash flow and contractual arrangements, and consider responding to shape the final rules before they are enacted.
Source:
- 1StopVAT (Aleksandar Delic) [1stopvat.com]
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