UK Budget May Force Amazon, eBay to Collect Seller Taxes
Chancellor John Healey is reportedly planning to hold online marketplaces liable for taxes owed by third-party sellers, potentially raising £1bn.
The United Kingdom's Treasury is reportedly preparing a significant tax enforcement measure that would compel major online marketplaces, including Amazon and eBay, to collect taxes owed by all third-party retailers operating on their platforms, according to reporting by The Guardian.
Chancellor John Healey is expected to unveil the policy as part of his first budget, with projections suggesting the crackdown could generate as much as £1 billion in additional revenue for the Treasury. The move reflects growing pressure on governments to close tax gaps created by the rapid expansion of e-commerce and the proliferation of independent sellers operating through large digital platforms.
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By shifting the burden of tax collection to the marketplace operators themselves, the government would effectively hold well-resourced technology companies accountable for compliance failures among the smaller vendors who use their infrastructure. This approach mirrors similar measures adopted or considered in other jurisdictions seeking to address tax evasion in the gig and platform economy.
The proposal signals a broader intent within the Healey Treasury to pursue revenue from digital commerce at a time when public finances remain under pressure. If enacted, the policy would represent one of the more consequential structural changes to UK e-commerce tax enforcement in recent years, potentially reshaping how platforms manage seller relationships and reporting obligations.
Continue reading at Business | The Guardian.
