HMRC simplifies VAT guidance for overseas sellers
HMRC said it is encouraging UK agents and shipping companies to share the simplified guidance with their customers
HM Revenue and Customs (HMRC) has published simplified VAT guidance for overseas sellers, with a new translation aimed at Chinese retailers that sell goods online into the UK.
The guidance has been translated into simplified Mandarin to support sellers exporting goods from China to comply with UK import and VAT regulations.
In 2022, the UK imported £83.3bn in goods and services from China and Hong Kong. Online shopping accounted for 26.5% of all UK retail sales in 2022, with a “substantial” number of goods being bought from international sellers via online marketplaces.
HMRC said it is encouraging UK agents and shipping companies to share the simplified guidance with their customers.
The information explains when and how VAT and import duties must be charged to customers by international sellers, as well as the different processes for direct to customer sales, and for sellers using online marketplaces.
HMRC’s updated guidance was published following detailed consultation and research with overseas sellers and brings together all relevant guidance in one place on GOV.UK.
Marc Gill, director for Individuals and Small Business Compliance at HMRC, said: “We have been working closely with international partners to better understand what information overseas sellers need in order to comply with their UK tax obligations.
“We have acted on feedback from businesses to simplify and compile this online guidance into one, easily accessible place on GOV.UK. We have also recently published a simplified Mandarin translation of our guidance following research conducted with Chinese businesses.”
He added: “By making our VAT and import duty rules easier to understand, we will be able to increase tax compliance levels for online sellers. We are asking UK freight, customs and shipping agents to help us reduce the tax gap by sharing this simplified guidance with their customers. By working together, we can help everyone pay the right amount of tax at the right time.”
