Question to the HM Treasury:

To ask His Majesty's Government when marketplaces and online retailers collect VAT under legislation introduced in 2021, how does HMRC ensure the VAT collected is actually handed over to HMRC; and what audit process and checks and balances are in place for allowing this proxy arrangement.

Online marketplaces and online retailers that are required to collect VAT under the legislation introduced in 2021 are required to do so by registering for VAT in the UK and paying any VAT due via a UK VAT return.

To ensure that VAT is correctly collected and paid to HMRC these businesses are subject to risk-based compliance activity in the same way as other VAT registered businesses.