Sale of goods within the UK via a marketplace
Based on the nature of the transactions, the responsibilities are the following
The merchant is selling goods to consumers via the marketplace and the goods are already in the UK at the time of sale.For VAT purposes the marketplace “qualifies as a supplier” for this transaction, regarded as if he is purchasing the goods from the merchant and then selling them to consumers. This applies to all sales of goods within the UK regardless of their value by overseas merchants. The merchant is performing zero rated sales to the marketplace in the UK and the marketplace is making domestic sales to consumers, charging them UK VAT at the point of sale. The marketplace has to register for VAT in the UK, file VAT returns and pay VAT to the tax authorities.
*Please note that special rules apply for sales to business customers, sales to Northern Ireland, sales of goods subject to excise duties and gifts.
*While our tutorial brings clarity to complex rules, it is not tax advice. There are many exceptions to these rules and the legislation is constantly changing therefore always speak with your trusted tax expert. If you need practical assistance with your VAT obligations we will be happy to help you.
