[responsive_menu_pro]

UK: HMRC Process Change – Direct VAT Assessments for Online Marketplace Traders Beginning in September

Spread the love

HMRC is modifying the process in which it conducts VAT assessments for foreign online marketplace sellers who submit wrong returns. The Chartered Institute of Tax published a note to inform impacted businesses and their Tax Agents of a step change in VAT compliance in this area. 

 

Starting 1 September 2022, HMRC will begin sending VAT assessments instead of asking for details from businesses when its data shows that the VAT returns are inaccurate. HMRC is making this change because they already possess the necessary information and do not need businesses to provide repeat information.  

 

The assessments will: 

 

  • be given to the seller’s registered address in the UK.  
  • apply to the period before December 2022.  

 

Sellers will maintain their usual appeals and statutory review rights.  

 

HMRC will also inform any online marketplaces used by the seller and issue a joint and several responsibility notice, making the marketplace potentially responsible for any unpaid VAT. The seller’s account will most likely be blocked as a result. 

 

How can we help?  

 

A VAT Assessment has a 30-day appeal period, so vigilance and rapid action are crucial if you get one in September. Knowing the rules and potential solutions in the VAT assessment process is half the battle. Contact GVC if you want to know more about dealing with UK tax assessments. 

 

 

 

Source: tax.org.uk 

 

Follow us on LinkedIn to keep up with the latest VAT news

Join us!

Subscribe to our monthly newsletter
  • This field is for validation purposes and should be left unchanged.

SUBSCRIBE TO GLOBAL VAT NEWSLETTER

Get the latest VAT information directly in your inbox and stay up to date with all VAT developments around the world.

You have Successfully Subscribed!