Posts by VATFraud 3 publicly visible posts • joined 2 Feb 2015
Chinese sellers with stock in the uk, committing vat fraud and laundering billions out of UK economy are not only defrauding HMRC.
They are taking all sales alway for uk companies like mine.
My company is on the verge of bankruptcy because we can no longer compete on price with vat evading Chinese sellers with stock in Uk
Perhaps you should share your views with all the staff and their families that I have just made redundant.
I am sure they will be comforted by them
All non UK Companies with stock in UK need to register for VAT when they make their first supply of goods in the UK
There is no Vat threshold
This systematic abuse of this Vat law has led to a significant distortion price in the uk & eu marketplace through vat abuse which has led to Vat registered businesses unable to compete on price.
HMRCs continued systematic failure to enforce compliance of EU Law regarding sellers obligations to display VAT numbers is fuelling VAT fraud and abuse on e-marketplaces such as Amazon and eBay which is continuing to grow at a near expotential rate.
The EU are introducing new regulations which will mean any goods being sold in the eu or uk will include Vat.
So if a Chinese seller distant sells to Uk customers, dispatching their stock from China they need to reigister for vat in the UK. All parcels entering uk through customs will need to display vat number on the outside of the parcel. If a parcel does not have a vat number it will be returned to sender.
A Chinese seller dispatching stock from uk with out registering for Vat is committing vat fraud in its simplest form.
The EU is trying to level the playing field by removing unfair marketplace price distortion by non Eu sellers in this era of global cross border ecommerce
When the article refers to NO EU Sellers, they are Sellers from outside the EU who have their stock located in the UK. These NON EU Sellers are officially know as NETPs - Non-established taxable persons (NETPs).
From 1 December 2012, all Non-established taxable persons (NETPs), supplying goods located in the UK are required to register for UK VAT when they make their first supply of goods or services here, regardless of the value. There is no VAT threshold.
The 200+ Sellers reported to eBay via Trading Standards were mostly NETPs. Some were seller trying to pass themselves off as UK companies.
The 200+ seller are making sales of around £250million on eBay.co.uk a year.
This equates to £41,666,666.00 a year in VAT evaded a year
HMRC quoted "HMRC added that failure to display a VAT number was not a breach of tax law"
Perhaps they should take a good look at the EU Distance Selling regulations on the Government website:
https://www.gov.uk/online-and-distance-selling-for-businesses/selling-online
"give your VAT number (if your business is registered for VAT)"
This sums up HMRC's complete incompetence and failure the realise the NON EU Companies with stock in the UK are using platforms like eBay & Amazon to defraud the UK of hundreds of millions in VAT and legitimate UK sellers Billions on lost revenue.....
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