UK Budget: marketplace VAT fraud and split payments
- EU VAT
- 22 November 2017 | Richard Asquith
The UK Chancellor, Phillip Hammond, today announced in the Autumn Budget a range of measures to combat an estimated £1.5bn in online VAT fraud
The measures from Spring 2018 include:
- The fulfillment house due diligence scheme that requires warehouses storing goods to perform proper due diligence on the goods they fulfil and their overseas clients.
- Making e-commerce marketplaces jointly and severally liable for unpaid VAT by UK and foreign merchants on their platforms. This extends the existing liability from non-EU merchants to catch those establishing 'shell' companies in the UK.
- Making e-commerce marketplaces jointly and severally liable to unpaid VAT if a platform knew, or should have known, a merchant should be VAT registered and were not.
- Marketplaces must check the validity of a merchants VAT number presented on their platforms
- The government will consider the introduction of split payments, whereby the VAT element of any e-commerce purchase is paid directly to the government
HMRC announced today that it is opening the test pilot for its Making Tax Digital for VAT programme to the public. However, HMRC also announced...
From 1 April 2019, more than 2 million VAT-registered businesses will be required to digitize their accounting and VAT filing for the new HMRC Making...
The UK’s HRMC has confirmed the next-stage plans for its Making Tax Digital (MTD) for VAT pilot. The pilot is aimed at helping develop filing...