HMRC chief executive, Jon Thompson, has confirmed in a letter to the chair of the public accounts committee, Meg Hillier, that a collaboration agreement for data sharing with online marketplaces will be published this month (see https://bit.ly/2qqhrwK).
HMRC chief executive, Jon Thompson, has confirmed in a letter to the chair of the public accounts committee, Meg Hillier, that a collaboration agreement for data sharing with online marketplaces will be published this month (see https://bit.ly/2qqhrwK).
According to the Financial Times, the signatories to the agreement will include Amazon and eBay.
Following a public accounts committee report last October, calling for ‘high-profile enforcement action’ against evasion by online traders, HMRC opened a call for evidence in March looking at ways of encouraging online platforms to play a greater role in ensuring tax compliance by their users.
In that document, HMRC confirmed it was: ‘working with online market places to develop a cooperation agreement that will include commitments for collaborative working arrangements, exchanges of data and timeliness of responses to evidence of non-compliance with the VAT rules’. The PAC report recommended putting this agreement in place by March 2018.
Taken together with the new rules introduced in Finance Act 2018 allowing HMRC to hold online marketplaces jointly and severally liable where they ‘knew or should have known’ a seller should be registered for UK VAT, Richard Asquith, indirect tax expert at technology company Avalara commented that these agreements are likely to force marketplaces to seek out sellers who were evading taxation.
HMRC chief executive, Jon Thompson, has confirmed in a letter to the chair of the public accounts committee, Meg Hillier, that a collaboration agreement for data sharing with online marketplaces will be published this month (see https://bit.ly/2qqhrwK).
HMRC chief executive, Jon Thompson, has confirmed in a letter to the chair of the public accounts committee, Meg Hillier, that a collaboration agreement for data sharing with online marketplaces will be published this month (see https://bit.ly/2qqhrwK).
According to the Financial Times, the signatories to the agreement will include Amazon and eBay.
Following a public accounts committee report last October, calling for ‘high-profile enforcement action’ against evasion by online traders, HMRC opened a call for evidence in March looking at ways of encouraging online platforms to play a greater role in ensuring tax compliance by their users.
In that document, HMRC confirmed it was: ‘working with online market places to develop a cooperation agreement that will include commitments for collaborative working arrangements, exchanges of data and timeliness of responses to evidence of non-compliance with the VAT rules’. The PAC report recommended putting this agreement in place by March 2018.
Taken together with the new rules introduced in Finance Act 2018 allowing HMRC to hold online marketplaces jointly and severally liable where they ‘knew or should have known’ a seller should be registered for UK VAT, Richard Asquith, indirect tax expert at technology company Avalara commented that these agreements are likely to force marketplaces to seek out sellers who were evading taxation.
