Liability of operators of online marketplaces for VAT in cases of deemed supply

77FException from liability under section 5A

1

This section applies where an amount of VAT is due from the operator of an online marketplace by virtue of section 5A.

2

The operator is not liable for any amount of VAT in excess of the amount paid by R (as defined in section 5A) provided that the operator took—

a

all reasonable steps to ascertain the matters set out in subsection (3), and

b

all other reasonable steps to satisfy itself that the amount charged was correct.

3

The matters are—

a

the place of establishment of the person making taxable supplies facilitated by the online marketplace;

b

the location of the goods at the time of their supply.