According to a leaked document which appeared in the Financial times the UK Government could be looking to close a VAT loophole, currently thought to cost the UK in lost tax revenue between £1bn and £1.5bn in 2015/16.
VAT fraud by online sellers occurs when goods are sold in the UK online but are deemed not to be in the country at the time of sale, but in reality, many large online retailers have fulfilment centres and goods are already in the UK and liable for a VAT charge.
The suggested time frame for ending the VAT exemption for UK sales of overseas goods is January 2021. This will be a tight deadline if it comes into force but will help to level the playing field for UK based businesses.
As UK government debt has skyrocketed during the pandemic tax evasion is going to be high on the hit list to recover monies owed!
How do you think the government will look to repay such high levels of burrowing?
#debt #vat #vatexcemptuion