Online tax reform must not unfairly hit small UK businesses, eBay says

Summarised from 2 outlets · 3 reports · Updated 19 Oct, 00:19 · Archive

eBay's UK boss has warned that planned reforms to online marketplace VAT collection must not unfairly penalise small British businesses.

Chancellor John Healey is expected to announce reforms to online marketplace tax collection in his upcoming Budget, making digital platforms directly responsible for collecting VAT from all merchants trading on their sites.

Currently, online marketplaces are required to collect VAT only on sales made by overseas businesses to UK customers. The proposed changes would extend this requirement to all retailers on their platforms with annual turnover above £90,000, regardless of where they are based. The overhaul is expected to raise up to £1 billion and help reduce business rates for physical stores on UK high streets.

Eve Williams, vice-president and general manager at eBay UK, warned that any tax changes must protect small UK businesses from unfair treatment. She told the Press Association: 'We strongly support that we ensure overseas sellers meet their legal and tax obligations, because I want to make sure our domestic sellers in the UK get the fairest chance to succeed as well, and that any of these tax changes that are coming in definitely protect small UK businesses.' eBay said it had held discussions with the Treasury on how to protect growth and prevent small businesses being unfairly affected.

Online tax reform must not unfairly hit small UK businesses, eBay says — Image: Evening Standard

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How it is being reported

Online tax crackdown must not ‘unfairly’ hit small UK businesses, eBay boss saysChancellor John Healey is expected to reform the way tax is collected on online marketplaces as part of his upcoming Budget.Evening Standard · 19 Oct, 00:01
eBay boss issues warning to Labour government over online tax crackdownChancellor John Healey plans to use his upcoming Budget to make digital platforms directly responsible for collecting VAT owed by all merchants trading on their sitesThe Independent · 19 Oct, 00:01
Online tax crackdown must not ‘unfairly’ hit small UK businesses, eBay boss saysChancellor John Healey is expected to reform the way tax is collected on online marketplaces as part of his upcoming Budget.Independent Business · 19 Oct, 00:01

In this story: John Healey · Eve Williams · eBay · UK

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