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Online marketplaces must collect VAT from sellers over £90,000

By Drooid · Oct 14, 2026, 10:29 AM UTC · How we work

Summary

Story summary

Chancellor John Healey will require online marketplaces to collect VAT from sellers.
The measure targets foreign retailers, especially Chinese sellers evading the 20% VAT.
Marketplaces become liable for VAT on sellers whose turnover exceeds £90,000.
Treasury expects the crackdown to raise up to £1 bn for business-rate cuts.
The Labour budget on 28 October will pair the tax change with cuts for 140,000 small retailers.

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Story summary

Chancellor John Healey will require online marketplaces to collect VAT from sellers.
The measure targets foreign retailers, especially Chinese sellers evading the 20% VAT.
Marketplaces become liable for VAT on sellers whose turnover exceeds £90,000.
Treasury expects the crackdown to raise up to £1 bn for business-rate cuts.
The Labour budget on 28 October will pair the tax change with cuts for 140,000 small retailers.