HMRC has published the text of a cooperation agreement that it will encourage online marketplaces to sign, under which marketplaces will exchange certain information about their sellers in the interests of promoting VAT compliance.
Commitments made under the agreement are voluntary and do not create binding legal obligations. These include:
providing HMRC with data about the businesses operating on their marketplaces to assist HMRC with tackling online VAT fraud and error;
ensuring that sellers have access to information about sellers’ VAT obligations in the UK, including for UK and EU sellers, as well as non-EU sellers;
responding expeditiously when notified by HMRC that sellers are using their marketplace in breach of UK VAT legislation obligations;
having systems to take appropriate action whenever presented with evidence of potential non-compliance with UK VAT registration obligations; and
informing HMRC when it has restricted the seller from selling on the UK marketplace, or removed a particular seller from its marketplace for non-compliance with UK VAT legislation obligations, within 30 days of that action.
The public accounts committee recommended in its October 2017 report on tackling online VAT fraud and error that HMRC should develop such an agreement.
HMRC has published the text of a cooperation agreement that it will encourage online marketplaces to sign, under which marketplaces will exchange certain information about their sellers in the interests of promoting VAT compliance.
Commitments made under the agreement are voluntary and do not create binding legal obligations. These include:
providing HMRC with data about the businesses operating on their marketplaces to assist HMRC with tackling online VAT fraud and error;
ensuring that sellers have access to information about sellers’ VAT obligations in the UK, including for UK and EU sellers, as well as non-EU sellers;
responding expeditiously when notified by HMRC that sellers are using their marketplace in breach of UK VAT legislation obligations;
having systems to take appropriate action whenever presented with evidence of potential non-compliance with UK VAT registration obligations; and
informing HMRC when it has restricted the seller from selling on the UK marketplace, or removed a particular seller from its marketplace for non-compliance with UK VAT legislation obligations, within 30 days of that action.
The public accounts committee recommended in its October 2017 report on tackling online VAT fraud and error that HMRC should develop such an agreement.
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