Following an announcement in the Spring 2017 Budget, HMRC has requested evidence on alternative methods for collecting VAT for online sales. This request follows measures introduced in the Finance Act 2016 which make operators of online marketplaces jointly and severally liable for VAT of overseas businesses.
HMRC is asking for evidence on how technology can be used to extract VAT in real time using payment technology and depositing it with HMRC (the split payment method). In particular, it is seeking details of experiences of VAT being extracted from payments in real time in other jurisdictions, the key challenges in developing a split payment model and enablers or new developments that could facilitate the development of a new collection mechanism. The closing date for comments is 30 June 2017.
A copy of the consultation is available to view here.