The issue isn’t going away and today the problem of overseas sellers evading VAT on marketplaces such as eBay and Amazon reaches Westminster.
In brief: we’re talking about overseas traders on eBay and Amazon, often from China, seemingly not paying VAT as you would expect and that offering a commercial advantage over UK businesses paying their way.
We’ve written about the so-called ‘Chinese seller‘ problem quite a lot previously. And we know plenty of readers are keen to see a level playing field restored with FairPlay from HMRC and the marketplaces.
There will be a debate by MPs in the “Westminster Hall” forum led by Conservative MP Chris Heaton-Harris and the order paper bills it as “VAT evasion and internet retailers“.
Westminster Hall offers an opportunity for MPs to raise issues that otherwise may not get Parliamentary time in the Commons. So whilst it is a shame that this concern isn’t currently getting a hearing in the main chamber, it is good news that it is registering in Parliament. Indeed readers in the Daventry constituency of Chris Heaton-Harris would be well advised to get in touch with him, and register their support and share their experiences, about the problems that VAT avoiding overseas seller cause their business.
We’ll report back on how the discussion goes.
8 Responses
It’s pretty sad though really how government doesn’t really care about this issue.
Isn’t it?
But I suppose it’s more important to make sure London housing rises 10 per cent a year and enabling policies around it.
Not only are the Chinese blatantly flouting our VAT rules on UK fulfillment but they’re actively defrauding UK companies too. The government need to toughen up and stop making it so easy.
I was informed yesterday that a Chinese company were trying to use our VAT details to import 2 pallets of stock worth over £3k so they didn’t have to pay the VAT on import.
.
I know this effects us online sellers, but ‘out there’ in the big BM world there are so many UK firms at it too.
Small?? shops that should be registered for VAT, taking 000’s ££ Cash each week that never gets declared……
A Small business near us, who have 6 full time employees (YES 6) + the owners, is NOT registered for VAT……
Assuming the owner employs the staff on a minimum wage @ arounf £7.50p per hour 40 hour week = £300 pw x 6 = £1800 per week x 52 = £93,600 per annum JUST IN WAGES, work it out….
VAT threashold £82K per annum turnover!!