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Call for evidence from government to ensure the compliance for online market platform

On 13th of March a new call for evidence has been issued to facilitate a better tax compliance for businesses and individuals who use such online platforms.

Current research shows that a great number of such users do not fully understand their tax liabilities and reporting obligations. More measures are being taken to combat tax avoidance and fraud in online market places. New rules are being introduced to facilitate collaboration and timeliness in exchange of data to evidence non-compliance with the VAT rules.
HMRC will soon publish all agreements with online platforms who signed up for such collaboration. The government want to understand how the online platforms interact with their users, what they know about them and if they understand their attitudes to their tax obligations.

Several measures have been taken to decrease tax loss of VAT from Non-Established taxable persons trading in the UK markets through online platforms. Autumn Budget 2016 has made such platforms jointly and severally liable for VAT obligations of overseas businesses. Such users are now obliged to display their VAT number in their account with online platforms. The government are now exploring alternatives mechanisms of collecting VAT to tackle non-compliance cases when overseas businesses are trading online and not paying or underpaying VAT.

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