Her Majesty’s Revenue and Customs (HMRC) warned in a tax guidance that overseas online retailers must pay VAT on items sold in the UK.
The tax agency said VAT liability applies to overseas sellers supplying goods already in the UK at the point of sale to consumers through an online marketplace. It also applies to:
By Guest Writer: Andy Dawnbarn, Wilkins Kennedy LLP
Andy Dawbarn is partner at Wilkins Kennedy (WK) in the UK. WK is one of the largest accounting and consulting firms in the UK and a new member of Allinial Global. Andy specializes in Value Added Taxes (VAT) having spent over 30 years in VAT, including HM Customs and Excise.
As Britain is left waiting to see what the future holds as an independent nation, many businesses will be asking questions about what to expect following the Brexit result and key timings as to when those changes will be taking place. VAT is one area where the UK could see more significant changes after leaving the EU and out of all the taxes is likely to be the most affected. (more…)
Delphi Automotive PLC, one of the leading suppliers of technology and devices allowing development of self-driving vehicles, won an appeal with the IRS allowing the company to be treated as a U.K. tax resident for U.S. federal tax purposes. The tax agency claimed in 2014 that Delphi, whose top executives are still in Troy, Mich., should be treated as a U.S. corporation for income tax purposes even after it reincorporated in the U.K. (more…)
