With the competition in the European e-commerce market becoming more and more heated, more and more European tax authorities are also concerned about the e-commerce tax compliance issues. Following Germany, Austria, France, Poland, Mexico and other countries have launched new tax rules for cross-border e-commerce, green circle ladies have received a notice from the UK tax office, the UK tax office has launched a new program for seller compliance.
It all started like this, a client who switched agents found his tax code had been deregistered, and both the client and the former agent denied having filed a deregistration application, so the green circle linked up with HMRC and got the following reply:
ISBC C&P are contacting traders who are believed to be overseas traders, registered for VAT for the purpose of selling goods though online marketplaces.
The traders being contacted will be those registered on trade class 47910 (online retail sales), and with an overseas address or at a known UK hotspot address.
Traders who will be contacted are those where their previous 3 or more VAT periods are either missing or Nil returns, and where ISBC C&P cannot find where They are trading.
ISBC C&P will attempt to contact traders via phone and also via email, to request the trader confirms their trading status and sites they are using.
Non response to this contact will result in the trader being compulsory deregistered for VAT due to being a missing trader and/or ceased to trade.
That is to say, the ISBC Online Marketplace team in the UK has taken the measure of compulsory deregistration against cross-border e-commerce sellers who have zero declaration for a long period of time or who have missed more than 3 declaration periods. Before logging out, the Inland Revenue will contact the seller by email or phone. If the seller does not respond, the UK tax office will consider that the seller has no intention of selling products in the UK, and the seller's VAT number will be completely canceled by the team.
This measure has been clearly stated by the IRS staff as targeting e-commerce sellers. The UK is in dire need of economic recovery after the epidemic, and various government departments are trying to cut back on their spending and budgets. As far as the IRS is concerned, it is a waste of time and money to manage the huge number of zero-declaration and non-declaration VAT accounts, and therefore the simplest way is to screen such sellers and cancel them across the board. At the same time, if these accounts have already been investigated by the IRS, even if the tax ID number is canceled, the tax investigation will not stop, and the tax that should be paid will still have to be paid.
If you have any of the above situations, please be sure to take action as soon as possible. Please keep in touch with your tax agent and if you receive any feedback from the tax office, you need to reply as soon as possible to avoid the compulsory deregistration of your tax code. Cancellation of your tax ID will not only affect the sales of your store on the platform, but will also leave a record with the tax office, which is not worth the loss.
Sellers who have already encountered this situation, please contact our consultants, we will help you find a reasonable solution.
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