UK: Updated VAT obligations for direct and online marketplace sellers
The HM Revenue and Customs of the United Kingdom released updated guidance regarding the Value-Added Tax (VAT) obligations for online marketplace sellers and direct sellers. The revised guidance highlights the following points:
- VAT registration obligations and instructions for sellers.
- Zero-rated VAT application on most food and children’s clothing items.
- VAT guidelines for goods imported for sale through online marketplaces, goods sold to VAT-registered UK businesses, and goods sold outside of the UK.
- Exemption of VAT from the flat rate regime calculation for sales that involve a VAT-liable online marketplace or business customer.
- VAT liability for goods that are located in Northern Ireland and sold through an online marketplace to customers within Northern Ireland.
The updated guidance aims to provide clarity and ease for sellers’ VAT obligations and compliance with the applicable laws and regulations.
Source: gov.uk
