Key points
  • HMRC and HM Treasury are consulting on extending marketplace VAT liability rules — currently applied only to certain overseas sellers — to UK-based sellers whose goods are in the UK at the point of sale.
  • The eight-week consultation opened 23 June 2026 and closes in mid-to-late August 2026 — sources differ between 16 and 18 August, worth confirming on GOV.UK before publication or before acting.
  • The consultation considers protections for smaller sellers, including a possible minimum platform turnover threshold aligned with the current £90,000 VAT registration threshold.

HMRC and HM Treasury are consulting on extending existing online marketplace VAT liability rules to UK-based sellers whose goods are in the UK at the point of sale.

What would actually change for UK sellers

Currently, online marketplace VAT liability rules apply only to certain overseas sellers — platforms like Amazon, eBay and Etsy can already be made responsible for accounting for VAT on behalf of non-UK sellers in specific circumstances. The consultation considers extending that same principle to UK-based sellers whose goods are physically in the UK at the point of sale. If adopted, this would shift responsibility for accounting for VAT to HMRC away from individual UK sellers and onto the platforms themselves — a meaningful structural change for anyone reselling through these marketplaces.

Why this consultation exists

Dan Tomlinson, the Treasury minister responsible for HMRC, has said non-compliance persists on these platforms among sellers based both domestically and overseas — the consultation is explicitly framed as a response to that non-compliance gap. Second-hand goods and private, non-business sellers are proposed to stay outside the scope of any changes, meaning this is aimed specifically at business sellers trading through marketplaces, not casual or one-off private sales.

Worth knowing The consultation considers a possible minimum platform turnover threshold aligned with the current £90,000 VAT registration threshold — meaning smaller sellers below that turnover level could be protected from the new liability shift even if the proposal is adopted in full. This is a proposal under consultation, not a confirmed carve-out.

The closing date discrepancy worth knowing about

Sources differ on the exact closing date: GOV.UK states 18 August 2026, while one trade title reported 16 August. This is flagged explicitly as a minor discrepancy worth confirming against the official GOV.UK consultation page before the consultation closes — if you're a UK seller planning to respond, don't rely on secondary reporting for the exact deadline, check GOV.UK directly given the eight-week window opened 23 June 2026.

Non-compliance persists on these platforms among sellers based domestically and overseas.

— Dan Tomlinson, Treasury minister responsible for HMRC, via Accountancy Daily, 2026

What could change before this becomes policy

This is a consultation, not confirmed legislation — the proposed minimum turnover threshold, the exact scope of "goods in the UK at the point of sale," and the treatment of mixed UK/overseas sellers are all still open questions the consultation is seeking views on. The closing-date discrepancy between GOV.UK and trade press reporting is itself a sign that details are still being finalised. UK sellers on Amazon, eBay or Etsy should treat this as an early-stage proposal to watch rather than a rule change to prepare for immediately, though it's worth reviewing your VAT registration status regardless given the proposed £90,000 threshold alignment.

Common questions

Is HMRC making Amazon, eBay and Etsy responsible for seller VAT?

HMRC and HM Treasury are consulting on extending marketplace VAT liability rules to UK-based sellers whose goods are in the UK at the point of sale. It is a consultation, not yet a confirmed rule change.

When does the marketplace VAT liability consultation close?

The eight-week consultation opened 23 June 2026 and closes in mid-to-late August 2026 — GOV.UK states 18 August while one trade title reported 16 August, a discrepancy worth confirming on GOV.UK directly.

Will small sellers be exempt from the new marketplace VAT rules?

The consultation considers a possible minimum platform turnover threshold aligned with the current £90,000 VAT registration threshold, which could exempt smaller sellers, but this is a proposal under consultation, not confirmed.

Does the marketplace VAT consultation cover second-hand or private sellers?

No. Second-hand goods and private, non-business sellers are proposed to stay outside the scope of any changes under consideration.

In short

HMRC is consulting on extending marketplace VAT liability rules to UK-based sellers on platforms like Amazon, eBay and Etsy, closing in mid-to-late August 2026 (check GOV.UK for the exact date). The consultation proposes protecting smaller sellers via a turnover threshold aligned with the £90,000 VAT registration limit, and excludes second-hand and private sellers. For UK resellers, this is currently a proposal to watch, not a confirmed change — but it's a good prompt to review your VAT registration status regardless.

Based on reporting by SPA / Accountancy Daily, 4 Aug 2026.

Sources