- The UK is considering extending online marketplace VAT liability so platforms, not UK sellers, would account for VAT on certain B2C sales made through their marketplaces.
- The proposal would apply to UK-based businesses selling goods located in the UK at the point of sale, and could also cover restaurant/takeaway food sold via online delivery platforms.
- For VAT-registered sellers, HMRC currently envisages a deemed zero-rated supply to the marketplace, with the platform charging the consumer at the correct VAT rate and reporting the tax on its own VAT return.
- The change would only affect sales through qualifying marketplaces; sales via a retailer’s own website or physical stores would remain under the normal VAT rules.
- The main threshold proposal is a “Minimum Platform Threshold” of £90,000 per platform, after which marketplace VAT liability would apply; this would be separate from the normal UK VAT registration threshold.
Source: fiscal-requirements.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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