The guidance states that:
Goods in the UK at the point of sale - sold by an overseas seller through an online marketplace.
This strand of the measure will apply to goods of any value where the:
•goods are owned by a seller who is based outside the UK
•goods are located in the UK at the point of sale
•seller sells the goods to a customer in the UK through an online marketplace
•supply is not to a VAT registered business
The following VAT treatment will apply.
The goods will already have been imported into the GB from outside the UK and existing VAT and duty obligations will apply at importation.
UK VAT will be due at the time the sale of goods takes place as it is now, but the significant change here is that the OMP will be deemed to be the supplier and so liable to account for the VAT on sales facilitated through its marketplace.
This means that for VAT purposes the seller, operating through an OMP, will no longer be making a supply to consumers in the UK.
At the point the goods are sold to the customer, the overseas seller will be deemed to make a zero-rated supply of the goods to the OMP.
This is so that the overseas seller will be eligible to register for VAT in the UK and reclaim any import VAT it has incurred in the course of importing the goods, subject to the normal rules for VAT deduction.
The overseas seller should show the value of its supplies in box 6 of its VAT return (value of sales) but will not be responsible for declaring VAT on those deemed sales made through the OMP.
Please see the guidance below:
Goods located outside the UK at the point of sale