Overseas Traders Evading UK VAT
In January 2024 HMRC commenced writing to approx. 12,000 businesses which it believes are based overseas, but incorporated in the UK. The main purpose for the companies to be registered in the UK is to avoid charging.
Overseas businesses selling goods to UK customers on platforms such as Aamzaon and Ebay are required to notify the platforms. This results in the platform deducting VAT on sales made and paying this directly over to HMRC.