On July 20th, HMRC announced a significant development slated for January 1, 2024, requiring an enhanced level of reporting from digital platforms concerning sales activities. The reporting by the digital platforms will begin in January 2025, accompanied by a suite of new regulations designed to accommodate these changes.
This initiative emerges from the broader context of bolstering international information exchange between the UK and other tax authorities pertaining to income generated by sellers from online/digital sales via platforms, applications, and websites. Notably, HMRC is poised to gather previously uncollected data, encompassing novel elements like banking information, if available from the platform. Sellers will be duly informed about the particulars of information shared on their behalf.
The scope of businesses affected encompasses:
- Operators of UK-based digital platforms, facilitating sales of goods and services on behalf of others.
- Enterprises and individuals leveraging digital platforms, including proprietary ones, to vend their goods or services.
- Merchants engaged in sales through 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.
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