After much pressure from the PAC (Public Accounts Committee) two of the largest online Sales platforms agree to provide information on potential evaders to HMRC. It will be hoped that this voluntary agreement works for all and that HMRC will take proactive enforcement action against such offenders.
Amazon and eBay are to ink a deal with the UK tax man this month to provide data on potential VAT evaders. Both companies confirmed to The Register they will sign a voluntary agreement with HMRC, along with other online marketplaces, to combat sellers failing to pay their fair share of tax in Blighty. According to HMRC, the tax loss from VAT fraud and error on online marketplaces was £1.5bn in 2016/17. It estimates that overseas sellers contributed to approximately 60 per cent (up to £900m) of the VAT loss, with the rest attributed to UK-based sellers.