HMRC not doing enough to tackle £1.5bn online VAT losses
Released 20 April 2017
HMRC’s understanding of the amount of tax lost to online VAT fraud and error, which it says may be up to £1.5bn annually, and its efforts to tackle the problem, have been criticised by the National Audit Office (NAO) as lacking sufficient detail or urgency.
The NAO has conducted an investigation into the concerns raised by the public accounts committee and a number of UK trader organisations that online sellers based outside the EU are not charging VAT on their goods located in the UK when sold to UK customers. Online sales accounted for 14.5% of all UK retail sales in 2016 with just over half of these conducted through online marketplaces.
More details are available here.