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Written question asked by Daisy Cooper (Liberal Democrat) on Monday, 15 December 2025, in the House of Commons. It was due for an answer on Wednesday, 17 December 2025. It was answered by Dan Tomlinson (Labour) on Monday, 22 December 2025 on behalf of the Treasury.

Amazon: VAT

Question

To ask the Chancellor of the Exchequer, what discussions her department has had with Amazon on its proposal to support the collection of £700 million in VAT receipts from online marketplace sellers operating overseas.

Answer

Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value.

The changes were introduced to ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance. Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes, together with the abolishment of Low Value Consignment relief, will raise £1.8 billion per annum by 2026-27.

The Government engages with a wide range of stakeholders as part of the policy making process.

Secondary information

Type
Written question
Reference
99815
Session
2024-26
Grouped for answer
Yes
Subjects
Electronic commerce VAT Amazon
Link
View this Written question on www.parliament.uk