Amazon and ebay ‘bankrupting UK firms’
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”.