There’s long been a perception that eBay and online sellers are tax cheats, and the call to do something about the problem is gaining steam in the UK. Its version of the IRS, called HM Revenue & Customs (HMRC), wants companies like eBay to hand over seller data, according to a report in ThisIsMoney.co.uk.
In the US, the IRS imposed rules on electronic payment processors resulting in Form 1099-Ks that they must send the tax agency. But in the UK, the concern is not limited to the underreporting of income – it also has a Value Added Tax (VAT). The standard VAT on most goods and services is 20%.
HMRC is seeking to get details from eBay, Airbnb, and other such firms to help it with compliance. “The aim is to clamp down on those who fail to declare profits from such activities, and so avoid paying income tax or VAT,” ThisIsMoney.co.uk wrote.
However, it editorialized, “While HMRC faces continued criticism for failing to do enough to get massive corporations such as Google to pay more tax on their UK earnings, it continues to launch aggressive assaults on the self-employed and other workers whom, it believes, are not disclosing their full incomes.”
But the UK government may go further – and much of the reason is due to imports from overseas, particularly Asia. Read More