A tax crackdown on online marketplaces, including Amazon and eBay, is reportedly being prepared for Chancellor John Healey's first budget. The measure could potentially raise up to £1bn for the Treasury.
Healey is said to be preparing to announce that online marketplaces will be made responsible for collecting tax owed by retailers selling on their platforms. This move would reportedly target foreign retailers who have avoided paying VAT on sales due to a lack of robust rules and enforcement.
Online marketplaces would be responsible for collecting VAT at source for retailers on their platform with an annual turnover exceeding £90,000, according to reports. These changes are expected to fund cuts to business rates for high street shops.
The Treasury stated that decisions on tax are for the Chancellor to set out at fiscal events, rather than commenting on rumour or speculation.