- The UK government consulted in June 2026 on extending VAT marketplace liability to UK-based businesses selling goods located in the UK.
- The proposal would move toward a full marketplace facilitator model, where platforms calculate, collect, and remit VAT on third-party sales.
- It is intended to reduce e-commerce VAT fraud and could raise up to £700m a year for the Exchequer.
- ICAEW warned of practical issues, including cash flow pressure for VAT-registered sellers using marketplaces, split compliance for dual-channel businesses, and added complexity for small firms using special VAT schemes.
- The consultation closed on August 18, 2026, and the government is now reviewing the feedback.
Source: icaew.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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