Member

The noble Lord talked about tax and collection. Since 2021, online marketplaces have been liable to VAT from overseas sellers operating on their platforms, levelling the playing field with UK businesses. I am advised that these reforms are working well and OBR-certified analysis estimates that the changes will raise £1.8 billion per annum by 2026-27. Clearly, ensuring VAT compliance is a responsibility of HMRC and tax collection is already managed through these existing frameworks, so we would worry about introducing tax-related provisions in this Bill as we think they would unnecessarily complicate the regulatory landscape. The Government’s view is that provisions relating to the collection of tax should be reserved for the Finance Bill. I should also say that HMRC uses risk-based compliance activities to ensure that VAT is collected and paid properly, including in the context of online marketplaces.