Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of extending deemed reseller rules to cover UK-established sellers.

Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value.

The changes were introduced to ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance.

Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes will raise £1.8 billion per annum by 2026-27.

The Government keeps all taxes under review as part of the policy making process.