UK Mandates Online Marketplaces to Account for VAT on Foreign Seller Sales in the UK

• Online marketplaces in the UK are responsible for VAT on goods sold by foreign sellers when the items are in the UK at the time of sale
• HMRC issued guidance confirming this responsibility on 20 June 2025
• Marketplaces must determine if a seller is based outside the UK
• Due diligence procedures should be tailored based on business size and risk systems
• Operators must keep records of the checks performed
• HMRC may request evidence of these checks
• Guidance provides examples for assessing a seller’s UK status
• Examples include checking business location, VAT registration, and Companies House details
• Additional checks may involve financial details, geolocation data, and phone numbers
• Further checks are advised if there is uncertainty about a seller’s UK establishment status

Source: regfollower.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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