John Healey ‘targets tax crackdown on online marketplaces’ in first budget
Summary
John Healey, the UK chancellor, is planning to change tax rules so online marketplaces like Amazon and eBay must collect VAT (a type of sales tax) from sellers on their sites. This change aims to raise up to £1 billion for the Treasury and help reduce business taxes for physical shops.Key Facts
- Online marketplaces will be responsible for collecting VAT from retailers with sales over £90,000 a year.
- The plan targets foreign sellers who avoid paying VAT by using online platforms.
- The extra tax money could reach £1 billion and be used to cut taxes for high street shops.
- Healey’s budget will be announced on 28 October.
- There is growing pressure to provide financial relief to small businesses on the high street.
- The Institute for Fiscal Studies warned Healey that he needs a clear plan to manage £35 billion in spending pressures.
- The International Monetary Fund raised the UK growth forecast to 1.3% for this year but advised continuing efforts to fix public finances.
- The Treasury said it does not comment on rumors and will share decisions at official budget events.
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