- At Tax Update 2026, the government launched a consultation on extending online marketplaces’ current liability for VAT on sales by overseas sellers to also cover sales by UK businesses, when the goods are in the UK at point of sale.
- The proposed measure is intended to combat non-compliance with the existing rules, which distorts competition and disadvantages compliant firms.
- The consultation seeks views on the design of the measure, as well as its potential administrative, commercial, and operational impacts.
- Timing: the government issued a consultation on 23 June 2026, which closes on 18 August 2026.
Resources (click to open)
