Parliamentary Search

Written question asked by Lord Brady of Altrincham (Conservative) on Tuesday, 4 February 2020, in the House of Commons. It was due for an answer on Thursday, 6 February 2020. It was answered by Jesse Norman (Conservative) on Wednesday, 12 February 2020 on behalf of the Treasury.

VAT

Question

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of the Association of Accounting Technicians' recommendation to make online platforms liable for the collection and remittance of VAT; and if he will make a statement.

Answer

The Government is determined to ensure that all businesses pay the tax that is due, and it is well aware of the potential for VAT losses that may arise when overseas businesses fail to comply with UK VAT rules, and the disadvantage for domestic businesses.

The Government has therefore taken action to make online marketplaces responsible for VAT losses as a result of fraud and error on their sites. HMRC have now issued over 10,800 joint and several liability notices to online marketplaces resulting in the removal of non-compliant sellers. These measures act as a strong deterrent to overseas businesses evading VAT.

The Government will continue to monitor the success of these interventions and will continue to look at alternative methods to address this issue.

Secondary information

Type
Written question
Reference
12216
Session
2019-21
Grouped for answer
Yes
Subjects
Internet Tax collection VAT Association of Accounting Technicians
Link
View this Written question on www.parliament.uk