The Government has granted HMRC strong new powers to make sure that online sellers are paying the right level of tax.
The key changes force online marketplaces like Amazon and eBay to clampdown on online sellers that aren’t paying the right level of VAT.
First announced in the Chancellor’s Autumn Budget in 2017, the new rules took effect last week.
They are designed to create a fair playing field between businesses that abide by tax laws and UK and international companies that flout them.
Financial Secretary to the Treasury, Mel Stride, said: “Whilst the honest majority pay what they owe, some businesses that sell goods online to UK shoppers are failing to pay the correct amount of VAT.