UK - Online VAT Fraud
HMRC has published an agreement to help build a collaborative relationship with online marketplaces and to promote VAT compliance by users of the marketplaces. When an online marketplace signs up to the agreement, the list of signatories will be updated.
The agreement is intended to foster a collaborative relationship between HMRC and online marketplaces to promote VAT compliance by users of the marketplaces which is underpinned by a set of legal obligations on the online marketplaces and a set of legal powers of HMRC.
The underlying logic being that online marketplaces may, in certain circumstances, be able to identify non-compliance with VAT registration rules and collect data on the trading activities of those businesses. Online marketplaces can be highly effective in educating and informing third party businesses to encourage VAT compliance and in providing HMRC with data and other information to assist their investigations and improve compliance.
Should you require any VAT assistance in the UK, or require any international VAT assistance, please contact us.