VAT: Fraud
The question
To ask the Chancellor of the Exchequer, what steps she is taking to tackle VAT fraud; and if she will bring forward legislative proposals to extend Deemed Reseller rules to UK-established businesses.
Answered by James Murray
Tax fraud undermines our economy, hurts legitimate businesses and robs our vital public services of much-needed funds.
The government is clear in its commitment to closing the tax gap, and ensuring everyone pays the tax that is legally due.
HMRC uses a wide range of civil and criminal powers to tackle VAT fraud. Online Marketplace liability rules were introduced in 2021 specifically to tackle VAT fraud and non-compliance by overseas sellers. The OBR estimates this will raise £1.8 billion per annum by 2026/27. The government continues to keep this tax policy under review.
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