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Hmrc Online Marketplace Agreement

Online marketplaces undertake to inform HMRC if it has prevented the seller from selling on the UK marketplace or removing a particular seller from its marketplace within 30 days of such action for non-compliance with UK VAT rules. Learn about the agreement and how it will contribute to collaborative relationships. By signing this agreement, all online marketplace platforms commit to providing HMRC with data on companies operating in their markets (selling to UK consumers) both en masse and on an individual activity basis, in order to help HMRC combat online VAT fraud and fraud. Such provision of data shall be made at the request of HMRC and should be voluntary or in response to the publication of a legal opinion. From 1 January 2021, platforms for importing B2C products with a value of less than EUR 150 are considered delivery by the original seller (an accepted B2B delivery) and the transfer of the goods to the final consumer (an accepted B2C delivery). The same applies to platforms which facilitate the intra-Community sale of goods by non-Community undertakings. Domestic sales (i.e. where goods are already in the customer`s Member State at the time of sale) and sales with transport from another Member State are covered by the new provision. The new provisions result in the online platform being responsible for collecting VAT on supplies to final consumers and transferring that VAT to the tax authorities. The online marketplace must determine where the consumer is located and what the applicable VAT rate is.

This can be a challenge, given that VAT rates vary by county and platforms may not always have a detailed description of the goods they sell. Regardless of the above, the Government is considering whether to set up a shared payment mechanism for online purchases, in which payment intermediaries (normally the merchant acquirer) would be required to deduct VAT from the amount paid by the customer and invoice it directly to HMRC before transferring the rest to the merchant. The government has acknowledged that the implementation of such a mechanism would be technically complex and it is not yet known when this could happen. You operate an online marketplace if you control access to it or its content. HMRC defines an online marketplace as a website (or any other means of providing information over the Internet) that anyone (including the online marketplace operator) can use to sell goods. Requiring online marketplace operators to verify the validity of the seller`s VAT identification number and post it on its website Given HM Revenue and Customs` (HMRC) recent enforcement efforts, online marketplace operators may wish to verify their compliance with UK VAT rules, which may lead to them being jointly and severally liable for UK VAT on sales from foreign distributors on their . . .