Retail Trade: Online Suppliers

Lord Carlile of Berriew Excerpts

Wednesday 28th February 2018 Lords Chamber

[Lord Henley]

My Lords, It is a matter for the CMA to look at these matters. As I said in my original Answer, it has the power to look at that. With regard to some of the aspects of taxation, I believe that Her Majesty’s Government have led the way on this issue internationally. HMRC continues to work with the online marketplaces to ensure effective action against sellers who are, for example, breaking United Kingdom VAT rules and to prevent new non-compliant sellers joining the market. We believe all those multinationals in that world ought to be paying the taxes due and we will not settle for anything less. Other than that, I think my noble friend should accept that many of the changes that are happening in the marketplace are being driven by what the consumer wants, and our job is to ensure that the marketplace can adapt to that.

[Lord Carlile of Berriew (CB)]

Does the Minister consider it acceptable that a company that delivers its goods from a warehouse in the UK to a customer in the UK but has its headquarters in, for example, the Channel Islands should pay less VAT than a company that delivers its goods from the UK to the UK and has its headquarters in the UK? That is what is happening.

[Lord Henley]

I do not think I can take the noble Lord much further than I have at the moment. Colleagues in the Treasury and in Revenue & Customs are aware of some of these problems and are looking at them, and he will be aware of commitments that were made in our manifesto. I cannot take it much farther than that.