Amazon UK reviews Chinese traders before VAT fraud clampdown.
Description --> In this new, I learned about the online retailer that are quietly rooting out sellers who do not hold UK VAT numbers to guard against HMRC’s new tax evasion powers. Amazon is quietly rooting out many of its Chinese traders who do not hold UK VAT numbers to try to protect itself from tax evasion inquiries later this year when new HMRC powers come into force.
The online retailer has been conducting a review of sellers’ VAT compliance in the UK. It is understood to have contacted many Chinese sellers, giving them until the end of the month to provide their VAT numbers. The new says that the recent years have seen an explosion in small, overseas firms using Amazon and other sites to sell to online shoppers in the UK. Large numbers, including many from China, are not charging VAT. As a result, they have been able to reach the “bestseller” rankings, dominating some of the most popular listings on Amazon.
The items were being sold by 23 different seller companies that appeared to have minimal or no business operations in the UK. Nine gave addresses in Hong Kong, eight in China and six in the US. All had arranged for Amazon to hold their stock in the UK, pack and send parcels, and deal with payment and returns queries.
Evidence --> https://www.theguardian.com/business/2016/jun/21/amazon-uk-reviews-chinese-traders-ahead-vat-clampdown