Jan 11, 2019
Amazon and eBay evict sellers amid VAT crackdown
Thousands of overseas sellers have been evicted from online marketplaces in the UK such as Amazon and eBay owing to a tax crackdown. Businesses, mostly from China, sold items including British flags, phones and fake eyelashes but evaded VAT. HM Revenue and Customs sends notices to seven different online sales sites if it discovers businesses failing to pay the correct VAT. It said that 4,600 sellers have been "Red-flagged" in this way. If the hosting sites, which also include Asos and Etsy, fail to take action they can be pursued by HMRC for any future VAT that is unpaid. The tax authority said that it had recouped about £200m in VAT after sellers have registered to pay VAT following an alert, officially called a Joint and Several Liability notice. If items are dispatched from UK soil, the sellers have to charge VAT at 20%..
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