Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Sellers red-flagged for paying incorrect tax

22 January 2019
Issue: 4680 / Categories: News

VAT: extending joint and several liability for online marketplaces and displaying VAT numbers online - guidance note.

More than 4 600 online sellers have been red-flagged to marketplaces for tax evasion during the past two years according to HMRC. As a result many sellers have had their online stores deleted.

The red flags known as joint and several liability (JSL) notices were introduced in 2016 to protect British businesses being undercut by overseas sellers evading VAT.

HMRC sends notices to online marketplaces when it finds a seller on the platform not paying the correct VAT. If the seller is not removed from the site the marketplace will be pursued for any future unpaid VAT by those sellers.

During the same period the number of applications for VAT registration by overseas businesses grew to 58 000. This...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon