Electronic Commerce: VAT
The question
To ask the Chancellor of the Exchequer, if she will expedite a consultation into proposals to require online marketplace sellers to collect VAT from overseas sellers.
Answered by Dan Tomlinson
Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value.
The changes were introduced to ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance. Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.
The Government engages with a wide range of stakeholders as part of the policy making process.
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