Draft statutory instrument, based on OECD model rules, sets obligations for platform operators with regards their sellers VAT activities
The UK’s House of Commons is now reviewing a statutory instrument which will set for platform operators their due diligence, record keeping and reporting obligations on the activities of third-party sellers on their marketplaces. They come into effect from January 2024.
The instrument provides for:
- Due Diligence: basic information to collect, verify and maintain on their sellers’ background.
- Record Keeping: steps to comply with the regulations
- Reporting Information: details of activities and transactions which must be reported.
- Reporting thresholds:
- the threshold of 2,000 relevant services per reportable period
- the threshold of 30 relevant activities per reportable period
- the threshold of EUR 2,000 per reportable period
- Penalties (and appeals) for late reports, which will not exceed £5,000
These regulations make provision implementing the OECD (2020), Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy, OECD, Paris and the OECD (2021), Model Reporting Rules for Digital Platforms: Optional Module for Sale of Goods, OECD, Paris. It also follows the EU’s DAC7 harmonised reporting initiative, which came into effect in 2023.