November 5, 2026

Online marketplaces to account for VAT on UK sellers from October 2027

Following a consultation, online marketplaces will have to account for VAT on relevant sales made by UK sellers from October 2027, and HMRC is also consulting on e-invoicing for VAT. If you sell through an online marketplace, we can help you understand how this affects you.

What this means for you

Individuals

If you sell goods online as a side income, this may change how VAT is handled on your sales from October 2027. Details of which sales are covered are still to come.

Sole traders

If you sell through an online marketplace, the platform rather than you will account for VAT on relevant sales from October 2027. Review your VAT records before then, and talk to us if you are VAT registered.

Limited companies

If your company sells through marketplaces, check how this changes your VAT reporting and pricing. HMRC is also asking how e-invoicing for VAT could work, so watch for future changes.

In Scotland

VAT is a UK-wide tax, so these rules apply in the same way in Scotland.

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