Campaign Against the £Billion Online VAT Fraud
The UK government has finally made Online Marketplaces responsible for collecting VAT on goods sold by Overseas Sellers.
HMRC has confirmed they are on target of collecting £1.4bn in VAT per year from overseas sellers since the new regulations was introduced on 1st January 2021. They had only collected £205m in VAT from overseas sellers between 2016 to 2018.
The amount of VAT now being collected is five times more than HMRC had previously estimated. We estimate over £9bn of VAT was evaded by overseas sellers since 2014.
We would like to thank Public Accounts Committee, The National Audit Office, Lords, MPs, Knights, Professors of Tax Law, Economists, The Heads of VAT in the EU, The BBC , The Guardian, The Times, Financial Times, Daily Mail, Daily Mirror, The Register and Tamebay and who have been instrumental in raising the awareness of our campaign and finally getting the government & HMRC to take action.
The Office for Budget Responsibility
On 27 October 2021, the Office for Budget Responsibility set out their assessment of the fiscal impact of the new rules for overseas goods introduced from 1 January 2020, which includes the requirement for overseas businesses to register for VAT in the UK for the sale of low value imported goods. Based on outturn data for the current year it is now expected that the measure will generate £1.4 billion in 2021-22, rising steadily to £1.8 billion by 2026-27, a fivefold increase on the previous estimate.
From our Blog
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