VAT: Tax Evasion
The question
To ask the Chancellor of the Exchequer, what recent estimate her Department has made of the level of loss to public finances of VAT non-compliance by overseas retailers through online marketplaces.
Answered by Dan Tomlinson
HMRC’s best estimate of VAT losses, for 2021 to 2022, as a result of overseas seller non-compliance occurring through online marketplaces is £150 million per annum as published in the NAO report Tackling tax evasion in high street and online retail - NAO report. This will not include any subsequent compliance activity to recover any losses from OMPs.
HMRC can raise assessments to recover unpaid VAT against an OMP should they incorrectly determine the establishment of an overseas seller unless they can demonstrate they have taken all reasonable steps to make that determination, leading to an under declaration of VAT.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →