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Posted Sun, 06 Aug 2023 17:44:17 GMT by Neelam2023
Hello, I know the rules surrounding selling goods on marketplaces, where the marketplace has to account for sales on their VAT return for the sales of your goods, and you can reclaim the VAT associated with the costs of those goods (stock) and other expenses, and you do not account for those sales, on your own VAT return. However, what about when you sell services or digital products using marketplaces, such as web design services or ebooks on marketplaces? We sell ebooks on Amazon and sell digital services on Fiverr, Upwork and other marketplaces. Do the same rules apply? Thank you
Posted Tue, 08 Aug 2023 16:28:12 GMT by HMRC Admin 10 Response
Hi
Please see below Digital portals, platforms, gateways and marketplaces.
If you supply e-services to consumers through an internet portal, gateway or marketplace, you need to determine whether you’re making the supply to the consumer, or to the platform operator.
The platform operator is supplying the consumer if the platform operator identified you as the seller but, sets the general terms and conditions, authorises payment or handles delivery or download of the digital service.
Then the platform operator would be responsible for accounting for the VAT payment that’s charged to the consumer.

 

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