Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to HM Revenue and Customs' press release entitled Government backs high street with acceleration of cheap import reforms and crackdown on dodgy online sellers, published on 23 June 2026, what estimate she has made of the number of overseas businesses that currently fail to comply with UK VAT obligations when selling through online marketplaces.

HMRC does not hold estimates for the number of overseas businesses that currently fail to comply with UK VAT obligations when selling through online marketplaces.

Following reforms in 2021, for most supplies of goods by overseas sellers through online marketplaces, it is the online marketplace that is responsible for accounting for any VAT due rather than the overseas seller. This secures VAT revenue upstream and protects against overseas seller non-compliance.