VAT: Fraud

Treasury written question – answered on 2nd July 2019.

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Photo of Faisal Rashid Faisal Rashid Labour, Warrington South

To ask the Chancellor of the Exchequer, what safeguards his Department has put in place to prevent online VAT fraud.

Photo of Jesse Norman Jesse Norman Financial Secretary to the Treasury and Paymaster General

The Government has led the way in tackling this complex and international problem. A package of measures was announced at Budget 2016 to tackle abuse by overseas businesses selling goods to UK customers through online marketplaces. This included holding online marketplaces jointly liable for the future unpaid VAT of non-compliant overseas businesses and the introduction of the Fulfilment House Due Diligence Scheme which went live in April 2019. At Budget 2017 the Government strengthened the joint and several liability rules for online marketplaces to include UK businesses, where they either knew or should have known that an overseas business should have been registered for VAT and required them to display a valid VAT number where provided with one. Taken together, these measures are expected to deliver just under £1bn by 2023.

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