Online Marketplaces: VAT Evasion Debate
Full Debate: Read Full DebateDepartment: Department for International Development
Lord McKenzie of Luton
Main Page: Lord McKenzie of Luton (Labour - Life peer)Department Debates - View all Lord McKenzie of Luton's debates with the Department for International Development
Online Marketplaces: VAT Evasion
Lord McKenzie of Luton Excerpts(5 years, 6 months ago)
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Lord Bates
We sympathise with those people, which is why we have listened to the calls that have been made. We have introduced pioneering joint and several liability for marketplaces and are introducing a due diligence system. While we are working through the G20 and the OECD, we are looking at initiatives that could be considered to solve the problem, such as split payments to ensure that VAT is automatically paid when someone domiciled in the UK makes a transaction.
Lord McKenzie of Luton (Lab)
My Lords, the PAC noted that HMRC does not know how many fulfilment houses, or packaging establishments, there are in the UK and is therefore unable to systematically target VAT fraud. Is that right? If so, what will the Government do about it?
Lord Bates
That is right, which is why we require those establishments to register.