Online marketplaces ― overview

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note looks at the VAT obligations placed on online marketplaces (OMPs). This note will be useful for OMPs, as well as any business that sells goods to consumers online.

In-depth commentary on the legislation can be found in De Voil Indirect Tax Service V3.268 and V6.314.

What is an online marketplace?

The concept of an online marketplace (OMP) is important in VAT because OMPs are subject to several unique VAT obligations. Key obligations include:

•
being deemed to supply goods sold through their platforms in certain circumstances and therefore becoming responsible for accounting for VAT
•
being held jointly and severally liable for VAT debts of non-compliant sellers trading via the OMP (in particular circumstances)

For VAT purposes an online marketplace (OMP) is:

•
a website, or any other means by which information is made available over the internet
•
which facilitates the sale of goods through itself
•
by persons (ie sellers) other than the operator (whether or not the operator also sells goods through the marketplace)

VATA 1994,

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Group relief for carried-forward losses

Group relief for carried-forward lossesThis guidance note examines in detail the relief available to groups for carried-forward losses. The scope excludes the treatment of specialist businesses such as banks, insurance companies and oil and gas companies.From 1 April 2017, companies can surrender

14 Jul 2020 11:50 | Produced by Tolley Read more

Corporation Tax

Substantial shareholding exemption ― overview

Substantial shareholding exemption ― overviewThe substantial shareholdings exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. No claim is required. Provided

14 Jul 2020 13:44 | Produced by Tolley Read more

Employment Tax

Fuel-related payments / mileage payments

Fuel-related payments / mileage paymentsIntroductionMost employers will make payments to employees in relation to business travel. Among the most common payments in relation to business travel are fuel and mileage payments. If an employer does not reimburse these amounts, then the employee will be

14 Jul 2020 11:46 | Produced by Tolley in association with Philip Rutherford Read more

��Ƶ