Value Added Tax Act 1994

[F1 77B Joint and several liability: [F2 sellers identified as non-compliant by the Commissioners] U.K.

(1) This section applies where a person (“P”)F3 ...—

(a) makes taxable supplies of goods through an online marketplace, and

(b) fails to comply with any requirement imposed on P by or under this Act (whether or not it relates to those supplies).

(2) The Commissioners may give the person who is the operator of the online marketplace (“the operator”) a notice—

(a) stating that, unless the operator secures the result mentioned in subsection (3), subsection (5) will apply, and

(b) explaining the effect of subsection (5).

(3) The result referred to in subsection (2)(a) is that P does not offer goods for sale through the online marketplace at any time between—

(a) the end of such period as may be specified in the notice, and

(b) the notice ceasing to have effect.

(4) If the operator does not secure the result mentioned in subsection (3), subsection (5) applies.

(5) The operator is jointly and severally liable to the Commissioners for the amount of VAT payable by P in respect of all taxable supplies of goods made by P through the online marketplace in the period for which the notice has effect.

(6) A notice under subsection (2) (“the liability notice”) has effect for the period beginning with the day after the day on which it is given, and ending—

(a) with the day specified in a notice given by the Commissioners under subsection (7), or

(b) in accordance with subsection (8).

(7) The Commissioners may at any time give the operator a notice stating that the period for which the liability notice has effect ends with the day specified in the notice.

(8) If the person to whom the liability notice is given ceases to be the operator of the online marketplace, the liability notice ceases to have effect at the end of—

(a) the day on which the person ceases to be the operator, or

(b) (if later) the day on which the person notifies the Commissioners that the person is no longer the operator.

(9) In this section—

• “online marketplace” means a website, or any other means by which information is made available over the internet, through which persons other than the operator are able to offer goods for sale (whether or not the operator also does so);

• “operator”, in relation to an online marketplace, means the person who controls access to, and the contents of, the online marketplace.

F4 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) The Treasury may by regulations provide that supplies made or goods offered for sale in circumstances specified in the regulations are, or are not, to be treated for the purposes of this section as having been made or offered through an online marketplace.

(12) The Treasury may by regulations amend this section so as to alter the meaning of—

• “online marketplace”,

• “operator” F5 ...

• F5 ...]

Textual Amendments

F1 Ss. 77B-77D inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 124(2)

F2 Words in s. 77B heading substituted (15.3.2018) by Finance Act 2018 (c. 3), s. 38(4)(a)

F3 Words in s. 77B(1) omitted (15.3.2018) by virtue of Finance Act 2018 (c. 3), s. 38(4)(b)

F4 S. 77B(10) omitted (15.3.2018) by virtue of Finance Act 2018 (c. 3), s. 38(4)(c)

F5 Words in s. 77B(12) omitted (15.3.2018) by virtue of Finance Act 2018 (c. 3), s. 38(4)(d)