UK VAT Compliance: Responsibilities of Online Marketplaces for Overseas Sellers

• Online marketplace operators are responsible for VAT on goods sold by overseas businesses.
• Verify if a seller is established outside the UK to avoid unpaid VAT.
• Keep evidence of checks to satisfy HMRC requirements.
• HMRC reviews evidence based on business size, risk systems, and case circumstances.
• Operators are liable for VAT on goods located in the UK at the point of sale.
• Reasonable checks should be based on business size, risk systems, and case specifics.
• Retain records showing steps taken to determine the seller’s establishment for VAT.
• HMRC evaluates the steps taken, their appropriateness, and the results.
• Example checks include verifying UK business presence, VAT registration, and UK address.
• Additional checks involve financial data, credit checks, and geolocation methods.
• Further verification is needed if checks suggest the seller is not UK-established.

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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