HMRC have published ‘Alternative method of VAT collection – split payment: summary of responses’, and have indicated they will continue to work towards a viable alternative VAT collection model for online shopping.

The Consultation set out some suggested mechanisms for how a spilt payment VAT collection method could work for Online shopping and who should be liable for accounting for the VAT.

The suggestions included:

Respondents to the consultation commented that:

The government still believe that a split payment method is a potential long-term solution for combating VAT fraud and reducing the VAT gap. It has been accepted that it will take time for it to be developed and implemented successfully.

An industry working group will look into how the system can work including:

Anyone wanting to join the group have been invited to contact This email address is being protected from spambots. You need JavaScript enabled to view it. by 5 December 2018.

Links

Online Marketplaces: selling goods in the UK

Online Marketplaces: joint and several liability

International goods

Place of supply: goods

Alternative methods of collecting VAT: a consultation

External link

Alternative method of VAT collection – split payment: summary of responses