UK's Healey to make online marketplaces collect tax from sellers
XLY•British finance minister John Healey said online marketplaces will have to collect VAT from sellers on their platforms starting in October 2027. The rules will cover VAT-registered UK businesses or those making more than £90,000 in sales on an individual marketplace.
1. Marketplaces to collect VAT
Healey said online marketplaces will become responsible for collecting VAT owed by retailers selling on their platforms. The finance ministry said the change, which takes effect in October 2027, is intended to tackle VAT evasion and support competition.
2. Rules and revenue
The rules will apply to UK businesses that are VAT registered or make sales of more than £90,000 on an individual marketplace. Healey said revenue raised would help fund business rate cuts for physical stores.
