Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to tackle VAT fraud; and if she will bring forward legislative proposals to extend Deemed Reseller rules to UK-established businesses.

Tax fraud undermines our economy, hurts legitimate businesses and robs our vital public services of much-needed funds.

The government is clear in its commitment to closing the tax gap, and ensuring everyone pays the tax that is legally due.

HMRC uses a wide range of civil and criminal powers to tackle VAT fraud. Online Marketplace liability rules were introduced in 2021 specifically to tackle VAT fraud and non-compliance by overseas sellers. The OBR estimates this will raise £1.8 billion per annum by 2026/27. The government continues to keep this tax policy under review.