UK Marketplace VAT Changes Planned for October 2027

02 November 2026

HMRC has confirmed plans to make online marketplaces responsible for collecting VAT on qualifying sales by UK businesses from October 2027. The measure will cover consumer purchases of goods held in the UK, including new phones, electronics and IT hardware.

Key takeaways

The rules will cover VAT-registered UK sellers and other UK businesses reaching annual sales of £90,000 on an individual marketplace.
Private sales, second-hand goods and B2B transactions are excluded. Secondary legislation will establish further implementation details.
The measure changes responsibility for VAT collection rather than increasing the underlying VAT liability on affected sales.

What this means for traders

Businesses selling new products to consumers through online marketplaces should prepare for changes to VAT collection and marketplace processes. Traders handling both new and used stock will need to ensure products and transactions are correctly classified, particularly because second-hand goods and B2B sales are excluded. Businesses should also review the potential effect on marketplace cash flow, accounting and system integrations before the rules take effect.

Read the full article on HMRC