Online marketplaces ― tackling VAT evasion and requirements placed on marketplace operators

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note looks at the requirements placed on online marketplaces (OMPs) to seek to tackle VAT evasion by sellers using OMPs to facilitate sales. For an overview of the provisions relating to the sale of goods sold via an OMP, including the definition of an OMP, see the Online marketplaces ― overview guidance note.

In-depth commentary on the legislation can be found in De Voil Indirect Tax Service V3.268 and V6.314.

Online marketplaces ― joint and several liability

OMPs are subject to special joint and several liability rules because the risk of VAT being evaded by sellers trading via online marketplace platforms is regarded as high. Where these joint and several liability provisions apply then the online marketplace can be held financially responsible for VAT which has not been declared by a seller using its platform.

Depending on the circumstances, the joint and several liability rules can apply:

•
when there is a non-compliant seller using the online marketplace (that is, a seller who fails to comply

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Value Added Tax

Payments on account (POA)

Payments on account (POA)This guidance note provides and overview of the payments on account regime (POA). More in depth commentary can be found in De Voil Indirect Tax Service V5.110.What are payments on account?VAT registered businesses with an annual VAT liability of more than £2.3m are required

14 Jul 2020 12:52 | Produced by Tolley Read more

Employment Tax

Loans written off

Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed

14 Jul 2020 12:11 | Produced by Tolley Read more

Personal Tax

Interest and penalties on late paid tax under self assessment

Interest and penalties on late paid tax under self assessmentInterestIf the capital gains tax, the balancing payment or payments on account of tax and / or Class 4 national insurance contributions (NIC) are paid late, HMRC will charge interest on the amount overdue from the original due date. The

14 Jul 2020 12:00 | Produced by Tolley Read more

��˾��ҹ��