Amazon & eBay to expose potential VAT evaders for HMRC

EGuitarStar · 6 Apr 2018 at 17:08

Long overdue but finally a step in the right direction. However, I feel it will cost HMRC more to actually go after those failing to pay tax than they will recover.

Amazon and eBay are to ink a deal with the UK tax man this month to provide data on potential VAT evaders.

Both companies confirmed to The Register they will sign a voluntary agreement with HMRC, along with other online marketplaces, to combat sellers failing to pay their fair share of tax in Blighty.

According to HMRC, the tax loss from VAT fraud and error on online marketplaces was £1.5bn in 2016/17. It estimates that overseas sellers contributed to approximately 60 per cent (up to £900m) of the VAT loss, with the rest attributed to UK-based sellers.

https://www.theregister.co.uk/2018/04/06/amazon_ebay_hmrc_vat_fraud/

Anyone here that'll be affected by this move?

Mynight · 6 Apr 2018 at 17:10

Good!

Aren't amazon supposed to be avoiding a lot of tax as well?

Kaeo · 6 Apr 2018 at 17:12

Oh the hypocrisy....

EGuitarStar · 6 Apr 2018 at 17:16

Mynight said:
Aren't amazon supposed to be avoiding a lot of tax as well?

I am sure HMRC will turn a blind eye to Amazon if they grass up enough small scale dodgers.

TallPaul1878 · 6 Apr 2018 at 17:40

HMRC: "Ah Amazon it appears your tax payments have fallen into arrears. We need to arrange an appointment to discuss this shortcoming".

Amazon CEO: "Ah, well let me invite you to my luxury yacht in the Bahamas where we can relax for a week and get right down to the details of this 'shortcoming'. Don't worry, we will arrange all expenses for you"

HMRC "It appears everything is now in order"

Ree · 6 Apr 2018 at 17:44

what a joke that is.

Hades · 6 Apr 2018 at 18:01

About time... But the absolute hypocrisy is blatant.

fretted · 6 Apr 2018 at 18:10

VAT is not the same as corporate tax.. It is unlikely that Amazon have not paid their VAT and very likely to have one of the highest VAT bills in the UK.

do_ron_ron · 6 Apr 2018 at 18:23

EGuitarStar said:
Long overdue but finally a step in the right direction. However, I feel it will cost HMRC more to actually go after those failing to pay tax than they will recover.

Anyone here that'll be affected by this move?

Never mind Amazon and ebay.
The EU is demanding VAT from the UK as they had warned the UK that VAT was being evaded as far back as 2007 on goods from China. There was a TV prog about this also months ago and actually the reporter set up a company with the help of a Hong Kong trader and got goods VAT free. According to the HK trader it was done so openly that most trades were done this way.

v0n · 6 Apr 2018 at 18:36

Amazon is a pita for businesses as in my experience they don't issue VAT invoices for about 50% of the products they handle out of their prime warehouses. They are tax evaders, they want their cut but don't want to ensure any compliance from their contractors. As far as I'm concerned if I buy it from them, they handle goods and it's delivered by them, they should issue me the correct invoice.

cainer · 6 Apr 2018 at 20:11

LOL at those two companys grassing up their clients, hypocrisy just reached a new high

FortuitousFluke · 6 Apr 2018 at 20:29

Isn't the vat threshold 80k p/a? I wish I was turning over 80k on eBay sales! Then again given all the crap cluttering up the house I need to sell who knows?

Energize · 6 Apr 2018 at 20:33

Grey import websites are a gift from God for the working class. VAT absolutely rapes poor people.

Pudney · 6 Apr 2018 at 20:43

v0n said:
Amazon is a pita for businesses as in my experience they don't issue VAT invoices for about 50% of the products they handle out of their prime warehouses. They are tax evaders, they want their cut but don't want to ensure any compliance from their contractors. As far as I'm concerned if I buy it from them, they handle goods and it's delivered by them, they should issue me the correct invoice.

If they're delivering third parties goods are they providing a service to you or the third party?

v0n · 6 Apr 2018 at 22:22

Third party. If I stop by the cafe and they sell tetley tea, or go to Tesco to buy Kenco coffee I'm never refused receipt on the grounds that I should apply to Tata Global Beverages for invoice. What Amazon do is calculated to be what it is. They are tax evaders. And their pretentious "ratting out" is just a decoy.

b0rn2sk8 · 6 Apr 2018 at 22:35

It's in their interests to co-operate on this because I am fairly sure that legislation has been recently passed which makes market places joint and severally liable for VAT evaders on their platforms. If it hasn't been passed it will be shortly.

£85k pa is nothing for a full time Amazon/Ebay sellers. They make a few % margin on a transaction, competition is high because there is basically zero barrier to entry into the market. You need to be turning over huge amounts to be able to take a decent wage.

As for people complaining about Amazon's corporation tax please do some research. When you buy stuff on Amazon from Amazon you buy goods from Amazon EU Sàrl which is not a UK company. The goods are not owned by a UK company so why would that generate corporation tax in the UK? It's made quite clear when you are buying goods from a company based in Luxembourg if you spend more than 3 seconds looking at the website. Amazon UK is nothing more than a warehousing and delivery service (in simple terms), many 3rd party sellers use this same service. It is not tax evasion and the corporate tax take is tiny in reality, most tax comes from VAT and income tax/NIC's.

Buy from a UK company if you are really that bothered about it.... oh wait....

Efour · 6 Apr 2018 at 23:29

Poundshops are just gonna get more customers.

Pudney · 7 Apr 2018 at 01:15

v0n said:
Third party. If I stop by the cafe and they sell tetley tea, or go to Tesco to buy Kenco coffee I'm never refused receipt on the grounds that I should apply to Tata Global Beverages for invoice. What Amazon do is calculated to be what it is. They are tax evaders. And their pretentious "ratting out" is just a decoy.

When you go to a cafe the cafe provides you with a service, not Tata Global beverages.

If Amazon aren’t providing you with a service they shouldn’t supply you with an invoice, those are the rules. It literally isn’t tax evasion.

v0n · 7 Apr 2018 at 09:42

Pudney said:
When you go to a cafe the cafe provides you with a service, not Tata Global beverages.

If Amazon aren’t providing you with a service they shouldn’t supply you with an invoice, those are the rules. It literally isn’t tax evasion.

Come on, don't stretch it - there is literally no difference between Tesco delivering third party products to your door and Amazon delivering third party products to your door, bar secondary service that allows you to walk into your local Tesco warehouse and pick products on your own. Yet one is pretending to be Luxemburg company with no tax footprint in UK and randomly doesn't issue VAT invoices to their customers.

Pudney · 7 Apr 2018 at 10:38

v0n said:
Come on, don't stretch it - there is literally no difference between Tesco delivering third party products to your door and Amazon delivering third party products to your door, bar secondary service that allows you to walk into your local Tesco warehouse and pick products on your own. Yet one is pretending to be Luxemburg company with no tax footprint in UK and randomly doesn't issue VAT invoices to their customers.

There’s a big difference, particularly in the world of VAT. If you buy something from a person on OCUK you don’t expect the Royal Mail to provide you with a VAT invoice do you?