Extending VAT Online Marketplace Liability Rules - Factsheet
Published 28 October 2026
© Crown copyright 2026
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/factsheet-on-extending-vat-online-marketplace-liability-rules/extending-vat-online-marketplace-liability-rules-factsheet
The government is extending the VAT online marketplace liability rules to UK businesses that are VAT registered or make sales of more than £90,000 on an individual online marketplace. This means that online marketplaces will become responsible for collecting the VAT which is charged on sales by certain UK businesses via their sites. This change is designed to tackle VAT evasion and support fair competition by helping ensure businesses that pay the tax they owe are not undercut by those that don’t.
The new rules will not apply to sales of second-hand goods; businesses who sell second-hand goods through online marketplaces will continue to charge VAT on those sales in the usual way.
The rules will not apply to personal sales, such as individuals occasionally selling their own clothes, household items or other personal belongings. The rules will also not apply to businesses selling goods to other businesses.
These rules will apply from October 2027.
What does this mean for me?
If you occasionally sell items online
If you occasionally sell your belongings online in a personal capacity, no VAT will be applied to those sales. This policy is aimed at business sales only.
If you run a business selling through online marketplaces
Under the new rules, if your UK business is VAT-registered, or has total sales over £90,000 on any of the platforms where you trade, the online marketplace will collect VAT on relevant sales made through its platform.
If your UK business is not VAT-registered, and makes less than £90,000 in sales on each platform where you trade, VAT will not be collected on your sales by the online marketplace. The £90,000 sales threshold applies separately to your annual sales on each platform where you do business.
For businesses impacted by the new rules, HMRC will publish detailed guidance ahead of implementation in 2027, including information on any accounting changes you may need to make, to help you prepare.
If you shop on online marketplaces
You will be able to continue shopping in the usual way.
Frequently asked questions
Will I have to pay VAT if I occasionally sell my belongings online?
No. Online marketplaces will not be collecting VAT on personal sales.
What does the £90,000 Minimum Platform Threshold mean for small businesses?
If you are a non-VAT registered small UK business making less than £90,000 of sales on an online marketplace, VAT will not be collected on your sales by any online marketplaces you use. This policy will only raise revenue from non-compliant businesses. It does not affect businesses’ existing VAT registration obligations.
Will prices increase because of these changes?
The majority of businesses are tax-compliant and will not need to raise their prices as a result of this change.
What if my business sells through more than one online marketplace?
Even if your business sells through more than one online marketplace, you will not be affected by the new rules if your business’s total sales per platform is below £90,000 and you are not VAT registered. If you are VAT registered the new rules will apply to all of your qualifying sales on online marketplaces.
Will online marketplaces collect VAT on second-hand goods?
Online marketplaces will not be required to collect VAT on second-hand goods sold by UK businesses, who already charge VAT on these sales in the normal way.
When will the changes start?
The changes will apply from October 2027. HMRC will publish detailed guidance beforehand to help businesses understand and prepare for the new rules.