VATupdate

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United Kingdom: Online Marketplaces to Handle VAT on Sales from 2027

  • From 1 October 2027, online marketplaces will have to account for VAT on relevant sales made through their platforms by UK VAT-registered businesses.
  • The same VAT collection rules will also apply to UK businesses not registered for VAT if their sales through an individual marketplace exceed £90,000 annually.
  • The £90,000 threshold is assessed separately for each marketplace.
  • Second-hand goods and business-to-business sales are excluded from the new rules.
  • ICAEW supports tackling VAT non-compliance, but says the per-platform threshold may miss businesses whose total taxable turnover exceeds the VAT registration threshold, potentially adding complexity without effectively targeting non-compliance.

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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