VAT Fraud & The Online Marketplace
Online marketplaces have become a playground for VAT fraudsters. In 2015-16 alone, VAT evasion by overseas sellers was estimated to have cost £1bn-1.5bn.
Since the start of 2021, online marketplaces facilitating (i) the supply of overseas consignments valued at £135 or less, or (ii) goods in the UK sold by an overseas seller, will become the deemed supplier and thus liable for VAT at the point of sale.
This means many online marketplaces will need to be on guard against VAT fraud by overseas sellers, with whom the revenue may have no direct contact. Such marketplaces will not be liable for VAT exceeding the amount paid by the customer, but only to the extent they have taken certain ‘reasonable steps’.
This webinar will focus on the scope of the new UK VAT rules, ‘reasonable steps’ that can be taken, and whether the new rules will help or hinder the fight against VAT fraud.
What You Will Learn
This webinar will cover the following:
- HMRC’s historic approach to online marketplaces
- The new regime:
- The definition of an online marketplace
- The rules
- The exceptions
- The sanctions for failure
- Practical tips - how to implement ‘reasonable steps’
- The impact of the new rules on VAT fraud
This webinar was recorded on 3rd August 2021
at your organisation