Policy paper

VAT: overseas businesses and joint and several liability for online marketplaces

The government has announced measures aimed at tackling rapidly growing online VAT evasion targeting overseas businesses and online marketplaces.



This guidance note explains how HM Revenue and Customs (HMRC) is strengthening existing VAT legislation for overseas businesses that should be registered for VAT in the UK. It gives HMRC greater flexibility in relation to when it can require some form of security. In addition, HMRC will also be given new powers to make online marketplaces jointly and severally liable for the unpaid VAT of overseas businesses who are non-compliant with UK VAT rules.

HMRC has also published a tax information and impact note and a consultation.

Published 16 March 2016