Ama­zon and ebay ‘bankrupt­ing UK firms’

Computer Active (UK) - - News -

UK busi­nesses are go­ing bank­rupt be­cause Ama­zon and ebay are let­ting tax­dodg­ing for­eign com­pa­nies sell on their sites, cam­paign­ers have claimed.

Ex­perts told MPS in the Com­mons Public Ac­counts Com­mit­tee that non-eu com­pa­nies, many based in the US and China, ad­mit to not pay­ing 20 per cent VAT, let­ting them hugely un­der­cut Bri­tish com­peti­tors.

Richard Allen from Re­tail­ers Against VAT Fraud said it was “easy” to find com­pa­nies avoid­ing tax on Ama­zon’s Mar­ket­place.

He added: “I’ve lost count of the num­ber of busi­nesses who have called me say­ing that they are be­ing af­fected”. Ama­zon and ebe­bay told MPS they were clamp­ing down on VAT dodgers. Com­mit­tee chair Meg Hil­lier ac­knowl­edged this, but added “you are still get­ting your com­mis­sion off peo­ple who have de­frauded the Bri­tish tax payer”.

Ama­zon said it was re­quest­ing VAT num­bers from their sell­ers, and claimed it was shar­ing this with HMRC. But HMRC’S head Jon Thomp­son ac­cused Ama­zon of not pro­vid­ing “com­plete trans­parency”.

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