If you are an online trader you need to know about the following information.
Amazon and eBay have agreed with HMRC to take steps against online sellers that cannot show they are dealing with their VAT obligations properly.
A number of marketplace platforms have joined forces with HMRC. The two biggest platforms to sign up are Amazon and eBay.
If any evidence of non-compliance with VAT obligations is found the marketplace company might firstly only ask for your VAT registration number.
However they also have the power to:
- ask you to explain (within 30 days) how exactly you deal with VAT for your online sales
- block your use of their site, if you do not respond, or there’s evidence of VAT non-compliance
To avoid this we advise all online traders to respond quickly to questions from their marketplace companies.
For more information, you can find out your VAT obligations in the UK here.
We also provide a Business Consultation to fulfill all your business needs.