UA-113309367-1 UK update the VAT Guide for Online Marketplace - Reporters Nigeria
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UK update the VAT Guide for Online Marketplace

HM Revenue and Customs has updated the value added tax guides for online markets and for providers to use them to sell to UK consumers.

The update follows the new rules outlined in the 2017 Budget.

Previously, new value added tax rules were introduced from 2016 to keep online markets subject to unpaid VAT by overseas retailers. Powers effective from September 2016 aim to address unfair benefits to overseas retailers through retailers in the UK by not including VAT on sales. network. The HMRC estimates that the Treasury costs about £ 1 billion (US $ 1.2 billion) a year, with many non-compliant foreign retailers based in China.

Under these rules, the HMRC may force overseas retailers to nominate a VAT representative in the United Kingdom or provide a financial guarantee. If the overseas retailer does not comply, the online market that they use to sell their goods may be liable. At the same time, warehouses distributing goods from overseas retailers need to be included in the survey plan by 2018 or subject to penalties.

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By 2016, the HMRC has seen 10 applications for VAT registration from internet retailers due to this change.

Then, to the budget in 2017, Britain has decided to strengthen the new regime by giving general and some responsibility for online markets and introducing a new obligation that requires the seller to display. their VAT number online.

Then, the UK recently proposed introducing a split payment model to address the non-compliance of the value added tax of offshore companies. Under the plan, VAT will be deducted from the price that consumers pay in real time using card payment technology, then the revenue will be sent to the HMRC.

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