Value Added Tax Act 1994 (c. 23)

Part IV U.K. Administration, collection and enforcement

[F1 Online marketplaces] U.K.

Textual Amendments

F1 S. 77B cross-heading inserted (15.3.2018) by Finance Act 2018 (c. 3), s. 38(3)

[F2 77BA Joint and several liability: non-UK sellers in breach of Schedule 1A registration requirement U.K.

(1) This section applies where—

(a) a person (“P”) who makes taxable supplies of goods through an online marketplace is in breach of a Schedule 1A registration requirement, and

(b) the operator of the online marketplace knows, or should know, that P is in breach of a Schedule 1A registration requirement.

(2) If the operator of the online marketplace does not secure the result in subsection (3), subsection (4) applies.

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

(a) the end of the period of 60 days beginning with the day on which the operator first knew, or should have known, that P was in breach of a Schedule 1A registration requirement, and

(b) P ceasing to be in breach of a Schedule 1A registration requirement.

(4) 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 relevant period.

(5) The relevant period is the period—

(a) beginning with the day on which the operator first knew, or should have known, that P was in breach of a Schedule 1A registration requirement, and

(b) ending with P ceasing to be in breach of a Schedule 1A registration requirement.

(6) But if the operator has been given a notice under section 77B in respect of P, the relevant period does not include—

(a) any period for which the operator is jointly and severally liable for the amount mentioned in subsection (4) by virtue of section 77B, or

(b) if the operator secures the result mentioned in section 77B(3), the period beginning with the day on which the operator is given the notice and ending with the day on which the operator secures that result.

(7) P is in breach of a Schedule 1A registration requirement if P is liable to be registered under Schedule 1A to this Act, but is not so registered.

(8) In this section “online marketplace” and “operator”, in relation to an online marketplace, have the same meaning as in section 77B.]

Textual Amendments

F2 S. 77BA inserted (15.3.2018) by Finance Act 2018 (c. 3), s. 38(5)