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As they say, the online marketplaces will be responsible for registering and paying vat. Sellers will just see increased fees on their listing, I guess?
Yes, most likely.
Question is how will they structure it - if it is just a sale price % markup (20% plus a bit for the marketplace admin) or if they have a fixed admin charge per item sold and / or per seller as well.
If the latter it would make low cost items or small sellers unviable.
What I had been expecting is that this change might lead to a switch from individual items being posted from China (which is only viable because, under the international post offices agreement (UPU) it costs less to post something to a UK address from China than it does from the next town) we might see things coming in via container and sold as UK goods rather than posted individually from China (there is a fair bit of this now on eBay now if you search for 'UK only' stuff).
Will be interesting to see how it plays out.
frank9755-
Just checked EU advice:
The supply of services by an EU business to a UK business will be considered as situated outside the EU and therefore not taxable under EU VAT legislation
but also
Under this rule, the supply of services by a UK business to an EU business will be taxable in the Member State where the customer is established
So for my company at least, we won't need to pay UK VAT unless there's a new agreement. Whether the UK later applies penalties to the customer I have no idea as there's no real proof that they gained services I'd imagine it'd be nigh on impossible to enforce.
atz
As they say, the online marketplaces will be responsible for registering and paying vat. Sellers will just see increased fees on their listing, I guess?