The Association of Accounting Technicians (AAT) has called for the introduction of tougher rules to compel online marketplaces to collect and remit all VAT to HMRC from transactions taking place on their platforms.
HMRC introduced new powers in 2016 to make marketplaces jointly and severally liable for unpaid VAT, which is believed to have led to more than 80,000 new VAT registrations. However, the AAT says there is little reliable information on how many of these 80,000 firms have subsequently submitted returns and paid the correct VAT due, or how many of these registrations may be fraudulent.
The AAT believes the UK should follow the example set by Australia, New Zealand and many states in the US, who require online marketplaces like Amazon, eBay and Etsy to collect and remit all VAT.
The Association of Accounting Technicians (AAT) has called for the introduction of tougher rules to compel online marketplaces to collect and remit all VAT to HMRC from transactions taking place on their platforms.
HMRC introduced new powers in 2016 to make marketplaces jointly and severally liable for unpaid VAT, which is believed to have led to more than 80,000 new VAT registrations. However, the AAT says there is little reliable information on how many of these 80,000 firms have subsequently submitted returns and paid the correct VAT due, or how many of these registrations may be fraudulent.
The AAT believes the UK should follow the example set by Australia, New Zealand and many states in the US, who require online marketplaces like Amazon, eBay and Etsy to collect and remit all VAT.
