HMRC has confirmed it is working with other government agencies, including carrying out joint visits with trading standards and sharing intelligence with the UK Border Force, to address risks across supply chains to ensure that sellers who sell online pay all taxes that are due.
In December 2015, more than £500,000 worth of goods were seized by tax officials from warehouses because it was suspected they had been illegally offered to UK online shoppers at VAT-free prices. The recovery followed the establishment of a taskforce to examine the best ways to crackdown on VAT evasion by sellers who operate through online platforms.
Online retailer Amazon was recently accused by MPs, during a parliamentary debate, of being “morally complicit” in VAT evasion perpetrated through its platform.
The parliamentary discussion on VAT evasion and internet retailers is available to view here.