On 25 April 2018, HMRC announced that it had published an agreement between itself and online marketplaces to help tackle online VAT fraud on their platforms.
Under this agreement, a marketplace agrees to provide HMRC with data relating to online traders in bulk rather than on a case by case basis. The marketplace will also help online traders better understand their UK registration obligations and respond swiftly when notified by HMRC of potential non-compliant traders.
HMRC intends to publish a list of signatories to the agreement, which will be updated regularly.
The scheme is voluntary and the agreement is not legally binding, however, non-accession could have reputational ramifications. Online marketplaces wishing to sign up or anyone who would like more information should contact HMRC at: email@example.com.
This cooperation agreement is part of HMRC’s ongoing efforts to combat VAT fraud and promote VAT compliance relating to transactions carried out in online marketplaces.
A copy of the agreement is available to view here.