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21 September 2016

UK joint and several liability provisions for online marketplaces now in force

Following Royal Assent of the UK Finance Bill, the joint and several liability provisions relating to online marketplaces have now come into force and HM Revenue & Customs (HMRC) has also formally issued its guidance regarding the provisions. Under these provisions, where an overseas trader who operates through an online marketplace is liable to be registered and account for UK Value Added Tax (VAT) and they fail to do so, HMRC now has powers in place to hold the online marketplace jointly and severally liable for any UK VAT due.

A Tax Alert prepared by Ernst & Young UK, and attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert 2016-1587

Document ID: 2016-1586

 

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