Companies including Amazon and Ebay have agreed to give their data to HMRC in an effort to crack down on value added tax (VAT) evasion by overseas retailers. The surprising news is that HMRC and the government have revised their estimates of how much VAT evasion is down to Chinese and other overseas sellers. Having estimated that between £1 billion and £1.5 billion is lost to overseas sellers, they now reckon that as much as 40% of the total VAT evasion could be due from UK sellers.
"We have worked with a number of online marketplaces to produce an agreement," he said. "Its purpose is to foster a collaborative relationship between HMRC and online marketplaces to promote tax compliance by users of online marketplaces."
Web souks will commit to providing a minimum amount of data on their sellers, including identifying individual businesses, their contact details, and calculating their sales in the UK.
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