VAT and digital platforms

Via section 349 of the Finance (No.2) Act 2023, measures were introduced which require certain UK digital platforms to report information to HMRC about the income of sellers of goods and services on their platform. HMRC then exchange this information with the other participating tax authorities for the jurisdictions where the sellers are tax resident.

Under the Organisation for Economic Co-operation and Development (OECD) rules, digital platforms in participating jurisdictions will be required to provide a copy of the information to the taxpayer to help them comply with their tax obligations.

Now HMRC have recently (last month) issued a new series of guidance , or updated guidance, on digital platform reporting, which are:

Selling goods or services on a digital platform

This Guidance explains the details a business needs to give to digital platforms when selling goods or services in the UK. A section on what information sellers will receive from online platforms has been added.

It covers:

• who is a seller
• information which must be provided
• reporting by platforms
• information to be received
• selling online and paying tax

Check if you need to carry out digital platform reporting

This guidance provides information on:

• what qualifies as a digital platform
• who should register
• how to register
• what needs to be reported
• information required for reporting
• carrying out due diligence
• when to report
• penalties

Register to carry out digital platform reporting

This sets out:

• who should register
• what you need to do
• how to register
• after you have registered

Managing digital platform reporting

This provides guidance on:

• submitting reports to HMRC
• ongoing account management
• when to report
• how to add or change a platform operator
• how to add or change a reporting notification to tell HMRC if you are a reporting or excluded platform operator
• how to add or change a reporting notification about the type of due diligence you choose
• changing contact details
• how to add team members
• how to inform HMRC that another platform operator will report for you (assumed reporting)