Amazon and Ebay cracking down on VAT fraud
Over the past year we have written a number of times about new VAT legislation effecting Amazon and Ebay traders selling to the UK.
Click here to read our article announcing the new legislation
Click here to read our article about Amazon starting to suspend accounts
In 2016 the UK government threatened to hold Amazon and Ebay accountable for the misdemeanours of traders selling through their platform.
This prompted Amazon last year to send a warning to its users that unless they are VAT compliant their account would be suspended. Around September last year we started to see accounts being closed and we were personally inundated with overseas Amazon traders grappling to get a VAT number.
Now the National Audit Office in the UK have weighed in on the issue claiming last week that £1 billion per year is being lost through fraud and error by sellers using these online market places.
Until now we have only seen action being taken by Amazon but over the bank holiday weekend we started hearing reports that Ebay have started phoning its users threatening an almost immediate suspension on non VAT registered users accounts.
Judging by the report out of the National Audit Office we believe Amazon and Ebay will start to tighten their grip on the situation through the remaining part of this year.
Another rule is due to come into force next year under which such businesses must perform due diligence checks on their overseas customers. Amazon are opposing this rule and will be keen to prove that they are in control of the situation.
FKGB Accounting specialises in helping overseas traders do business in the UK. We have helped many Amazon and Ebay traders to become VAT compliant. Contact us to find out how we can help.
