Online marketplaces ― overview

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note looks at the VAT obligations placed on online marketplaces (OMPs). This note will be useful for OMPs, as well as any business that sells goods to consumers online.

In-depth commentary on the legislation can be found in De Voil Indirect Tax Service V3.268 and V6.314.

What is an online marketplace?

The concept of an online marketplace (OMP) is important in VAT because OMPs are subject to several unique VAT obligations. Key obligations include:

•
being deemed to supply goods sold through their platforms in certain circumstances and therefore becoming responsible for accounting for VAT
•
being held jointly and severally liable for VAT debts of non-compliant sellers trading via the OMP (in particular circumstances)

For VAT purposes an online marketplace (OMP) is:

•
a website, or any other means by which information is made available over the internet
•
which facilitates the sale of goods through itself
•
by persons (ie sellers) other than the operator (whether or not the operator also sells goods through the marketplace)

VATA 1994,

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

Residential property and capital allowances

Residential property and capital allowancesResidential property ― plant and machinery allowancesOrdinary residential property does not, and never has, qualified for capital allowances. as CAA 2001, s 35 denies plant allowances for expenditure incurred in providing plant or machinery for use in a

14 Jul 2020 17:14 | Produced by Tolley in association with Martin Wilson and Steven Bone Read more

Personal Tax

Losses on shares set against income

Losses on shares set against incomeUsually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note

14 Jul 2020 12:12 | Produced by Tolley Read more

Corporation Tax

Real estate investment trusts (REITs)

Real estate investment trusts (REITs)Introduction to REITsA real estate investment trust (REIT) is in fact not a trust at all, it is a company which qualifies for special tax treatment under CTA 2010, Part 12. REITs are similar in many ways to collective fund vehicles (such as unit trusts) in that

14 Jul 2020 13:04 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax Read more

UU��ֱ��