Online Marketplaces: VAT Evasion

Debate between Lord Bates and Lord McKenzie of Luton

Monday 22nd October 2018 Lords Chamber

[Lord Bates]

We sympathise with those people, which is why we have listened to the calls that have been made. We have introduced pioneering joint and several liability for marketplaces and are introducing a due diligence system. While we are working through the G20 and the OECD, we are looking at initiatives that could be considered to solve the problem, such as split payments to ensure that VAT is automatically paid when someone domiciled in the UK makes a transaction.

[Lord McKenzie of Luton (Lab)]

My Lords, the PAC noted that HMRC does not know how many fulfilment houses, or packaging establishments, there are in the UK and is therefore unable to systematically target VAT fraud. Is that right? If so, what will the Government do about it?

[Lord Bates]

That is right, which is why we require those establishments to register.