Chancellor plans VAT collection rules for online marketplaces

Summarised from 4 outlets · Updated 19 Oct, 00:56 · Archive

Chancellor John Healey reportedly plans to require online marketplaces including eBay to collect VAT on behalf of all retailers with turnover above £90,000.

Chancellor John Healey is reportedly preparing to announce plans requiring online marketplaces such as eBay to collect VAT on behalf of retailers selling through their platforms. The proposals would apply to all retailers with annual turnover above £90,000, regardless of where they are based.

Under current rules, online marketplaces must collect VAT on sales made by overseas businesses to UK customers. However, some foreign firms have reportedly used shell companies to circumvent these obligations. The new proposals aim to close this loophole.

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, warned the Government must ensure small businesses are not unfairly affected. She said: '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.'

Williams noted that eBay had been discussing the proposals with the Treasury and was keen to ensure any new rules would 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.

How it is being reported

• eBay users could face major tax change under reported John Healey Budget plansChancellor John Healey is reportedly preparing to announce plans requiring online marketplaces to collect VAT on sites such as eBay.Swindon Advertiser · 19 Oct, 00:01
• eBay users could face major tax change under reported John Healey Budget plansChancellor John Healey is reportedly preparing to announce plans requiring online marketplaces to collect VAT on sites such as eBay.Wiltshire Times · 19 Oct, 00:01
• eBay users could face major tax change under reported John Healey Budget plansChancellor John Healey is reportedly preparing to announce plans requiring online marketplaces to collect VAT on sites such as eBay.Gazette & Herald · 19 Oct, 00:01
• eBay users could face major tax change under reported John Healey Budget plansChancellor John Healey is reportedly preparing to announce plans requiring online marketplaces to collect VAT on sites such as eBay.This Is Wiltshire · 19 Oct, 00:01

In this story: John Healey · eBay · Eve Williams · United Kingdom

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