- The growth of the sharing economy creates some challenges to the VAT tax base, particularly in relation to the responsibility for accounting for VAT on supplies to consumers, collecting VAT on cross-border sales, and ensuring compliance.
- The previous government issued a call for evidence in 2020, which closed in March 2021, seeking views on those challenges and how to respond.
- Following this, the previous government intended to continue working with industry and the OECD on the issues raised. It is not yet clear how the current government intends to proceed.
- Timing: the timeframe and scope of any further changes is not yet clear.
Resources (click to open)
- VAT and the Sharing Economy (HMT, call for evidence (December 2020), response paper (July 2021))
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