Increased HMRC collection of information for sales using digital platforms
On 20 July HMRC confirmed that from 1 January 2024 they will requiring additional information to be reported to them on sales that take place on digital platforms. The reporting by the digital platforms will begin in January 2025 and new regulations have been introduced in this area to cover the changes.
The background to this includes the improved swapping of information internationally between the UK and other tax authorities regarding sellers’ income from online/digital sales of goods and services through platforms, apps and websites. Some of the information that HMRC may wish to collect will be new information that hasn’t previously been collected, for example banking information if that’s held by the platform. Sellers will need to be made aware of the information that has been provided on them.
Affected businesses will include:
UK Digital platform operators that facilitate sales of goods and services by others;
Businesses and individuals that use digital platforms, including their own, to sell their goods or services;
Those that sell using Apps and websites.
We will endeavour to provide comment on the new requirements as information is published but this is an area that affected businesses should keep a watchful eye on going forward.
If VAT technical or accounting processes are causing a concern do get in touch directly with us. Centurion is the Indirect Tax specialist team within the Xeinadin Accountancy and Business Advisory Group and support clients across the UK and Ireland. Call us on 0330 124 7740; email your usual Centurion adviser or use IndirectTax@Xeinadin.com Expert VAT support is just a call away.
This article is for general information only and specific advice should be sought as required.