UK's Healey to make online marketplaces collect tax from sellers

The UK government plans to shift the burden of collecting VAT on online sales to digital marketplaces. Finance minister John Healey said he will strengthen rules so sellers using platforms cannot evade VAT when they sell online. The change, announced in his budget speech to parliament, would make marketplaces such as Amazon, eBay, Temu, Shein and Alibaba responsible for collecting the VAT charged on sales by sellers on their sites. The UK finance ministry says the rules—set to start in October 2027—aim to tackle VAT evasion and protect competition by reducing the advantage of sellers that do not pay tax. The rules apply to UK sellers VAT-registered or selling more than £90,000 ($120,000) on a marketplace.