Online sellers are have UK VAT responsibilities if they sell goods in the UK via an online marketplace, such as ebay, 
Amazon or Gumtree, and are one of the following:
- a UK seller selling goods already in the UK at the point of sale to UK consumers
- an overseas seller, or their UK VAT representative, who either:sells goods already in the UK at the point of sale to UK consumers
- is based outside the EU and sells goods to a UK consumer, and then imports them into the UK
sells goods located in another EU member state to UK consumers
There are different VAT rules for overseas sellers based in the EU who sell goods in the UK, that aren’t in the UK at the point of sale.
HMRC define an online marketplace as a website (or any other means by which information is made available over the internet) that anyone (including the online marketplace operator) can use to offer goods for sale.
This applies even if the online marketplace:
- isn’t established in the UK
- sells its own goods over the internet
An online marketplace operator can be held liable:
- for an online seller’s unpaid VAT
- if an online seller doesn’t meet its VAT requirements
You’re considered to operate an online marketplace if you control access to it, or its contents. Read our earlier blog to understand what those liabilities mean.
Our team of VAT experts can help with a range of tax advice from assessments to partial exemption and registration. Get in touch today if you’d like to discuss how we could work together.
