Summary
- HMRC and HM Treasury opened a consultation on 23 June 2026, Extending online marketplace liability to combat non‑compliance, proposing to broaden the deemed‑supplier provision to cover UK‑established sellers whose goods are in the UK at the point of sale. [gov.uk]
- Currently platforms are liable only for certain overseas‑seller sales (2021 rules). The 1stopVAT analysis notes tens of thousands of non‑compliant UK vendors, with takeaway/restaurant sales via platforms a particular enforcement challenge. [1stopvat.com]
- The consultation runs eight weeks, closing 18 August 2026, and explores small‑business protections (a minimum platform threshold or VAT‑rate relief). Private non‑business sellers remain out of scope. [gov.uk], [vatupdate.com]
Article
On 23 June 2026, HMRC and HM Treasury launched a joint consultation, Extending online marketplace liability to combat non‑compliance, proposing to expand the deemed‑supplier provision so that online marketplaces become responsible for VAT on sales by UK‑based businesses, where the goods are situated in the UK at the point of sale. [gov.uk]
As explained by 1stopVAT, the 2021 rules already made platforms liable for VAT on certain sales by overseas sellers and have reduced fraud, but HMRC’s survey indicates a significant portion of UK B2C sellers on marketplaces remain non‑compliant—with the takeaway and restaurant sector especially hard to monitor. Making the platform operator accountable is presented as an enforcement tool that levels the playing field with physical high‑street retailers. [1stopvat.com]
The proposal reaches beyond classic retail to everyday goods and takeaway food ordered through platforms. The consultation is split into seven chapters and, per the GOV.UK consultation document, seeks views on design and mitigation for small businesses, running for eight weeks until 18 August 2026, led by Edward Brett (HMRC) and Tesni Steeds (HMT). Two small‑business protections are floated—a minimum platform threshold or VAT‑rate relief for businesses below the VAT threshold—while private non‑business sellers stay outside scope. [gov.uk] [vatupdate.com]
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