Overseas Traders & Online Sales

The National Audit Office have released statistics that suggest that, in the financial year 2015/2016, up to £1.5bn that was payable to HMRC as a result of online sales in the UK has not been received. There are multiple reasons for this, such as genuine error, deliberate fraud or a genuine lack of understanding of how to account for UK VAT correctly on these sales.


In September 2016, HMRC introduced new legal powers that would assist them in tackling the issues regarding online trading and have developed tools to identify traders who are not accounting for UK VAT correctly on their sales. Since these new powers have been introduced, there has been a rise in VAT registrations for non-EU online traders, however this issue remains prevalent.


Therefore, if you or your client sells goods to UK customers through online marketplaces, please call our free VAT helpline to ensure that the business is meeting its UK VAT commitments.

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