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Consultation on role of online platforms in ensuring tax compliance

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HMRC is consulting until 8 June 2018 on what online platforms could do to make users aware of their tax obligations, similar to the role employers play in the PAYE system.

This paper is mainly concerned with administration of direct taxes and outlines measures already underway to combat VAT fraud in online marketplaces. Examples of action taken in other countries include:

  • France, where platforms must provide users with a description of their obligations in relation to each transaction;
  • Estonia has enabled voluntary reporting from some online platforms, allowing users to opt-in to having data sent to the tax authorities to allow pre-population of returns; and
  • Belgium has introduced a new tax rate for those providing services who make less than €5,000, with platforms able to withhold 10% of gross payments.