- HMRC issued new guidance for online marketplace operators on 20 June 2025.
- Operators must determine if a seller is established outside the UK to establish VAT liability.
- Operators are liable for VAT on goods located in the UK sold by overseas businesses.
- Operators must take reasonable steps to verify a seller’s establishment location.
- Guidance includes methods to check seller establishment and processes to implement.
- HMRC will review evidence of checks and consider the appropriateness and timeliness of actions.
- Examples of checks include verifying UK business presence, VAT registration, Companies House registration, director residency, financial information, and geolocation.
- General guidance covers VAT charging for online marketplace sales to UK customers.
- The rules aim to prevent VAT evasion by non-UK online sellers.
Source: marcusward.co
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.
