Watch this hearing before the Public Accounts Committee from 15.52 onwards where Dame Lin Homer is questioned about the Amazon and eBay VAT scandals.
Lin Homer fails to answer questions. She cannot say why it has taken years for HMRC to address this issue.
She admits HMRC do not know at present who may be liable for VAT she admits is missing.
She does say suppliers are responsible for their supply chains.
And then staggeringly says that Amazon and eBay cannot be liable for the VAT.
I disagree. EU law makes it clear they can and should be liable in my view.
But she has now provided those companies with what looks like an official let out stated in parliament which will no doubt be rolled out by them in their defence. I think that reckless.
Who is liable for her recklessness?
I hope she will be.
Hat tip: Richard Allen
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VAT = Voluntary Amazon Tax
What makes episodes like this unacceptable, in a democratic sense, is that the clear and obvious corruption of purpose of the public service ethos by people like Homer and her political bosses probably does not even require any brown envelopes full of used notes stuffed into the pocket.
There was a time when people received honours for dying for and protecting their country. These days they receive honours for lying and protecting their company.
Just watched this on Parliament TV and Lin Homer’s unconvincing performance. It demonstrated the folly of having someone as head of HMRC whose own tax knowledge is distinctly shaky.
Agreed
Entirely
She never mastered her brief
If you say Amazon are liable for vat can you out me in the right direction for someone who can help me reclaim it back from hmrc?
Is this for the postage element of sales?
Evidence may interest you
As you have not been charged it you cannot reclaim it
As a seller I have paid it on gross sales and items delivered through Amazon’s supply chain.
You are misunderstanding the issue. If you are charged VAT you can only reclaim it if you are VAT registered. The issue here is about retailers who should be VAT registered who are not and whether Amazon should be in part liable for that VAT evasion since Amazon are arguably part of the supply chain .
Confined to my sick bed I’ve just listened to the whole session, Richard. Interesting throughout. I actually think she does say that those that provide “the marketplace” have responsibilities, but then is very careful not to get drawn on what they are. But the shocking thing is that they are still “considering” what the implications are, and therefore what needs to be done. But what really made me laugh is when Dame Lin says that this (online shopping) is an “emerging” trend, and that UK shoppers are ahead of the rest of Europe with this. Come on! Read any newspaper from the past decade – particularly post every Xmas – and anyone would know this is past an emerging trend long ago. It’s been a highly visible and a rapidly growing marketplace for a decade.
The question is, why do nothing about it? Fear of the legal might of Amazon and eBay? Maybe. Or maybe simply because to do so would eat up resources (and big time at that), particularly at a time (ie. from 2010 onwards) when you’ve promised the Treasury that you’ll deliver “efficiency” savings year on year on year. In which case, as nobody was at that time paying much attention to this issue, be pragmatic and concentrate on those aspects of what HMRC does that get in the news.
Beyond that, elsewhere in the session there a point at which it becomes pretty clear that the rationalisation of tax offices is being primarily driven as a response to the end of the STEPS PFI arrangements. And while I appreciate he may well have been grandstanding, Stephen Phillips’ questioning toward the end of the session throws up some very interesting responses/material.
I agree with all of that
And I agree she says there is supply change responsibility
And she then appears to let Amazon and eBay off the hook When I think it is clear legal action must take place
And as for her surprise that the UK uses Amazon – it was so stupid it was just daft
Phillip’s really got her in a corner
And now, get better soon!
Having dealt with HMRCs legal department in a major court hearing there is a simple answer to their inaction…they are crap.
It is staggering that the potential “leakage” of huge amounts of VAT online, which has been known about for many years is neither understood, quantified or any plan in place to deal with it.
It continues to illustrate the lack of focus and effort on tax collection compared to the micro management of social welfare.
Agreed
The final questioning around HMRC’s attitude to prosecutions was fascinating. As an effective deterrent their approach seems pathetic. Surely the starting point should be that their policy is to prosecute everyone who has been caught/suspected of any illegal tax evasion?
In several of my local supermarkets are big signs as you enter saying that their policy is to prosecute EVERYONE caught shoplifting irrespective of the value of goods stolen (i.e. no matter whether children, homeless or destitute).
Why should tax evasion be any different, it should be even more severe than shoplifting a few sweeties!
Please can you explain the provision of EU law under which Amazon would be liable for output VAT that should have been charged by third parties selling through its website.
http://www.taxresearch.org.uk/Blog/2015/11/02/amazon-and-ebay-who-is-liable-for-the-vat-evasion/