HMRC change in process for Online Marketplace Traders - Direct VAT Assessments from September
The Chartered Institute of Tax (CIOT) has issued a useful note to alert both affected businesses and their Tax Agents of a step change in the process of managing VAT compliance in this area. Where HMRC would have issued requests for more information in cases where they feel that a VAT inaccuracy may have arisen in the records of an online marketplace business, they will - from September – start to issue direct VAT assessments for the VAT they consider at risk rather than issuing requests for information from the tax payer.
As businesses in this sector or as their business advisors, you will need to recognise that a VAT Assessment has a 30 day appeal time attached to it and therefore vigilance and prompt action will be required from September should you be in receipt of such VAT assessments.
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