eBay warns against unfair tax crackdown on small businesses

Summarised from 3 outlets · Updated 19 Oct, 10:58 · Archive

eBay's UK boss has warned the Government must protect small businesses from a planned VAT tax change on online marketplaces.

Chancellor John Healey reportedly plans to announce changes requiring online marketplaces to collect VAT on behalf of retailers selling through their platforms. The changes are expected to affect thousands of businesses using sites such as eBay.

Under the reported proposals, online platforms would have to collect VAT for all retailers with an annual turnover above £90,000, regardless of where they are based. This would close a loophole which has reportedly seen some overseas sellers avoid VAT, with some foreign firms using shell companies to get around the rules. Currently, online marketplaces must collect VAT only on sales made by overseas businesses to UK customers.

The changes are expected to raise up to £1 billion and could help fund lower business rates for physical shops on Britain's high streets.

Eve Williams, eBay UK's vice president and general manager, said it was vital that any changes ensured overseas sellers paid the tax they owed without putting domestic businesses at a disadvantage. 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.'

Ms Williams said eBay had been talking to the Treasury about how any new rules could support growth rather than create extra barriers for smaller firms. She warned that strict financial thresholds could discourage entrepreneurs from expanding their businesses, pointing to VAT and National Insurance costs for employers.

eBay warns against unfair tax crackdown on small businesses — Image: Andover Advertiser

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How it is being reported

eBay boss warns Budget tax crackdown must not unfairly hit small businessesChancellor John Healey is reportedly preparing to announce plans requiring online marketplaces to collect VAT on sites such as eBay.Andover Advertiser · 19 Oct, 10:51
eBay boss warns Budget tax crackdown must not unfairly hit small businessesChancellor John Healey is reportedly preparing to announce plans requiring online marketplaces to collect VAT on sites such as eBay.Romsey Advertiser · 19 Oct, 10:51
eBay boss warns Budget tax crackdown must not unfairly hit small businessesChancellor John Healey is reportedly preparing to announce plans requiring online marketplaces to collect VAT on sites such as eBay.Basingstoke Gazette · 19 Oct, 10:51

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

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