- 31st May 2018
- Posted by: Suzy Hill
- Category: Business News, HMRC News, VAT
eBay and Amazon pledge to promote VAT compliance
The European arms of eBay and Amazon have signed an agreement with HMRC to tackle online VAT fraud and promote VAT compliance to users of online marketplaces, although there are only three signatories to the agreement so far.
Amazon Europe Services Sarl and eBay EMEA both signed HMRC’s agreement in April 2018 with another online marketplace, Fruugo.com, adding its name to the list in May 2018.
By signing the agreement, the online marketplaces commit to providing HMRC with data about the businesses operating on their marketplaces both in bulk form and on an individual business basis.
Signatories also agree to ensure that sellers have access to information about sellers’ VAT obligations in the UK.
An online marketplace is defined in VAT legislation as ‘a website, or any other means by which information is made available over the internet, through which persons other than the operator are able to offer goods for sale (whether or not the operator also does so).’
Tackling online VAT fraud and error – the role of online marketplaces in co-operating with HMRC (The agreement) is here.