From Radio 4 yesterday:
https://www.youtube.com/watch?v=RPKKX8P7RA8&feature=youtu.be
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Founded a UK ISP back in the 1990s – at the time AOL & others did not charge people VAT by having the authentication servers outside the UK & thus claiming they were delivering the service from outside the UK. My guess in this case is that the big boys will try to claim that the transaction etc was off-shore & if HMC wants its VAT they should go after the person buying the stuff. Oddly, in Belgium, it is a nightmare buying things from outside the EU, to the point where I don’t bother – don’t mind paying tax, just the “entertaining” way the Belgian tax randomly pick a number and use that to levy tax. In the case of HMRC they are probably too old fashioned and not sufficienctly switched on. Hey Richard – if they need some consultancy I’m always happy to give it 🙂 (very reasonable rates)
The “big boys” taking the position that HMRC should pursue each individual buyer for the unpaid VAT potentially opens some interesting cans of worms.
The companies, large and small, who are currently being undercut by 20% on price as a result of this illegal and unfair competition might well feel justified in taking a position that if HMRC cannot or will not (after all we did recently have a full State visit complete with parades, banquets, and the usual manufactured mass enthusiasm for the Chinese ‘competition’) they should have the same trade rights as those avoiding VAT and be able to opt out as well. From their point of view it would seem only fair and equitable and would restore trade tariff parity. If HMRC can chase up individual consumers direct for the VAT on all transactions with this so called competition then they can do it for everyone. Sauce for the goose etc.
It’s an interesting notion. Totally bonkers but nevertheless interesting. Perhaps it could be tagged on as one of those tariff “barriers” in the TTIP final implementation which the oxygen breathers keep getting their brain cells in a twist over?
But what I can’t wait for is the hordes of Uriah Heeps, who regularly attend the daily internet two minute hate fests over the approximate annual £1.5 billion benefit ‘fraud’, to come troll, troll, trolling along defending to the hilt the rights of private enterprise to ‘avoid’ this £2 billion annual VAT legal requirement on the grounds that profit for those who can never ever have sufficient wealth is sacrosanct.
This issue of VAT fraud/avoidance on online sales is the polar opposite of a red light district.
The first should have a bright light shone down its throat; for the other a little tax secrecy should be tolerated.
So without further ado here’s a list of the eBay sellers recently reported to Trading Standards and HMRC
http://www.vatfraud.org/vat-evading-ebayers
Shape up or leave, you mothers.