UK's Healey to make online marketplaces collect tax from sellers

Alibaba Holding

Today 13:18

LONDON, Oct 28 (Reuters) - British finance minister John Healey said on Wednesday he would make online marketplaces responsible for collecting value added tax (VAT) owed by retailers selling on their platforms.
"I will strengthen the requirements for online marketplaces so that sellers cannot avoid paying VAT when they sell online," Healey said in his budget speech to parliament.
The change would make companies such as Amazon AMZN.O, eBay EBAY.O, Temu PDO.O, Shein 0625.HK and Alibaba 9988.HK responsible for collecting VAT at source for retailers on their platforms.
Healey said revenue raised would help fund business rate cuts for physical stores.

 (Reporting by David Milliken, writing by James Davey; Editing by Toby Chopra)
 ((james.davey@thomsonreuters.com))