India is tightening up their requirements for online sellers stipulation that everyone must register for Goods and Services Tax (GST) if they sell on online marketplaces from the 1st of July 2017.
For eBay, this means eBay India will need a Goods and Services Tax Identification Number (GSTIN) for every registered seller when the ruling comes into force. New sellers on eBay India will now need to register their GSTIN before they can start selling. Existing sellers will need to register their GSTIN with eBay India by the 25th of June 2017, although eBay recommend that you do so as soon as possible.
If you don’t register in time then your PaisaPay account will be suspended and you won’t be able to sell on eBay India until you get your paperwork in order.
What’s interesting here is that in India you don’t have to have a GSTIN until your turnover is INR 20 lakhs (about £24,500). India have made a ruling that if you sell goods or services on an online marketplace they everyone will be required to register regardless of the normal threshold.
Should all UK seller register for VAT?
This set me wondering what would happen if every seller on UK marketplaces were forced to register for VAT regardless of turnover and if they had any VAT to pay. It would instantly give HMRC your total online turnover from all marketplaces and no one would be able to sell without registering their VAT number. Of course it still wouldn’t stop fraudsters ‘borrowing’ someone else’s VAT number, but it would soon come to light when HMRC started chasing a seller for any VAT that was due.