Electronic Commerce: VAT:Written question - HL3225

Asked by Lord Lucas
Asked on: 03 November 2015
HM Treasury
Electronic Commerce: VAT
To ask Her Majesty’s Government, in the light of recent reports about VAT fraud by online traders operating from abroad, what is their estimate of the impact of such tax evasion on (1) the public purse, and (2) UK businesses.
Answered by: Lord O'Neill of Gatley
Answered on: 17 November 2015

Any UK VAT losses arising from online traders operating from abroad are already included within the published UK Tax Gap.

The estimate of the VAT Gap published in “Measuring Tax Gaps 2015 edition” on 22 October 2015 is £13.1 billion. Overall, the UK Tax Gap was 6.4 per cent in 2013-14,down from 6.6 per cent in 2012-13. As part of that, the VAT Gap is calculated as 11.1 per cent in 2013-14, a reduction from 11.9 per cent in 2012-13.

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