½Û×ÓÊÓƵ

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


Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

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


Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
imgtext

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:

  1. •

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

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL NOW
Powered by
  • 23 Aug 2024 10:10

Home/ ½Û×ÓÊÓƵ Guidance/ Value Added Tax / Doing business internationally

Popular Articles

Owner-Managed Businesses

Tax implications of administration and liquidation

Tax implications of administration and liquidationThis guidance considers the tax implications of a company going into administration or liquidation.Introduction to company administration and liquidationCompany going into administrationA company which is in financial difficulty may go into

14 Jul 2020 15:29 | Produced by Tolley Read more Read more
Corporation Tax

Entity classification

Entity classificationImplications of entity classificationIf a subsidiary is established, it is important to determine how it will be treated for UK tax purposes as this will determine the basis on which it is taxed. A subsidiary may either be transparent (like a partnership, where the individual

14 Jul 2020 11:37 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Furnished holiday lets

Furnished holiday letsThis guidance note sets out the qualifying conditions for a property let to be treated as a furnished holiday let (FHL) for tax purposes and the subsequent tax implications.Whether or not a property qualifies as an FHL can make an important difference to the taxation

14 Jul 2020 11:46 | Produced by Tolley Read more Read more