From The Independent · · 1m 20s
Chancellor plans tax crackdown on online marketplaces
John Healey is reportedly preparing to make Amazon, eBay and Temu collect VAT from foreign sellers, raising up to £1bn for high street shops.
In brief
John Healey is reportedly preparing to make Amazon, eBay and Temu collect VAT from foreign sellers, raising up to £1bn for high street shops. Chancellor John Healey is reportedly planning to make online marketplaces collect VAT from foreign sellers to raise up to one billion pounds for high street business rates…
Healey targets online tax avoidance
Chancellor John Healey is reportedly preparing to make multibillion-pound online marketplaces such as Amazon, eBay and Temu responsible for collecting tax owed by retailers selling on their platforms.
Foreign sellers evading VAT rules
The policy will crack down primarily on foreign sellers who abuse the rules to avoid paying VAT.
One billion pounds for high streets
The policy is expected to raise as much as one billion pounds, money which will be used to cut business rates for high street shops.
“protect local family businesses and the high streets we love”
New VAT collection threshold set
Online marketplaces would be responsible for collecting VAT at source for all sellers who have an annual turnover of more than ninety thousand pounds.
Expert warns of loopholes remaining
Tax expert Dan Neidle welcomed the tightening of rules but said the system would still be open to exploitation.
“Unless that happens these Chinese sham companies will find just another way around the rules.”
Amazon backs the crackdown
Amazon said it welcomes the government's decision to extend Deemed Reseller rules to all sellers regardless of where they are based.
The key point
Chancellor John Healey is reportedly planning to make online marketplaces collect VAT from foreign sellers to raise up to one billion pounds for high street business rates.
