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Budget to Require Amazon, eBay, Temu VAT Collection

By Drooid · Oct 27, 2026, 23:05 UTC · How we work

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Summary

Chancellor John Healey will deliver the UK Budget to the House of Commons on 28 October 2026.
The budget proposes over £1 billion to expand the Warm Home Discount for low-income households.
It will force Amazon, eBay and Temu to collect VAT from sellers on their platforms.
The budget adds a mansion tax on homes valued above £2 million.
It allocates about £1 billion annually to defence to meet a 3 percent GDP target by 2030.

History

In April 2020 the United Kingdom introduced a 2 % Digital Services Tax, raising £358 million in its first year and joining a wave of DSTs adopted by 18 countries by 2024. Boris Johnson and HM Treasury framed the levy as a way to capture revenue from US-based platforms. The 2026 budget builds on that precedent by extending VAT to Amazon, eBay and Temu and taxing homes.

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Historical Context

In April 2020 the United Kingdom introduced a 2 % Digital Services Tax, raising £358 million in its first year and joining a wave of DSTs adopted by 18 countries by 2024. Boris Johnson and HM Treasury framed the levy as a way to capture revenue from US-based platforms. The 2026 budget builds on that precedent by extending VAT to Amazon, eBay and Temu and taxing homes.

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