- UK Government issued guidance for online marketplaces on VAT liability for goods sold by non-UK businesses.
- Guidance includes steps to determine if a seller is based in the UK.
- Online marketplaces must take reasonable steps to establish the seller’s location.
- Steps are examples, not mandatory, and operators decide what checks are appropriate.
- Factors for decision include business size, risk assessment systems, and transaction details.
- Keeping records of steps taken is crucial for demonstrating compliance.
- HMRC will review data and actions taken by operators to ensure they are suitable and timely.
- Suggested checks include verifying business location, VAT registration, and UK presence indicators.
- Operators must use judgment and due diligence specific to their business context.
- Emphasizes the importance of a detailed Know Your Customer procedure.
Source: vatabout.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.
Latest Posts in "United Kingdom"
- VAT Beginner’s Guide: Essential Basics for UK Business Registration and Rates
- When Do You Have to Charge Yourself VAT? Key Situations Explained
- Supreme Court Clarifies VAT Group Rules and Time of Supply Interplay
- Isle of Wight NHS Trust vs HMRC: VAT Exemption Dispute on Locum Medical Practitioners
- HMRC Guidance: How to correct VAT errors and make adjustments or claims (VAT Notice 700/45)
