HMRC’s new powers to tackle the VAT gap.
HMRC recovered an extra £3.17bn in underpaid VAT from large businesses as a result of compliance investigations by its large business directorate in the year to 31 March 2016.
This is less than the £3.38bn collected the previous year. But according to Pinsent Masons HMRC continues to scrutinise major e-commerce companies that it believes do not collect all of the necessary VAT payments from internet traders or businesses using their online marketplace platforms.
These include a measure to ensure overseas businesses appoint a UK-based VAT representative who will be liable for the tax.
In addition e-commerce platforms could be held ‘jointly and severally’ liable for the VAT debts of overseas internet traders that use them to sell goods to UK consumers. If the retailer does not pay and the platform fails to prevent the abuse occurring the platform could be required to pay the entire tax...
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