Amazon and eBay were accused of condoning fraud with VAT
In the United Kingdom to the address of Amazon, eBay and several companies providing virtual marketplace for independent sellers, there were charges of abetting fraud value added tax (VAT). The claim was expressed by a government Committee the Public Accounts Committee.
As you know, companies outside the EU do not pay VAT in the amount of 20% by selling goods in the United Kingdom. However, if the product is actually in the United Kingdom, the tax payment would be mandatory. However, many foreign sellers keep the goods in British warehouses to ensure fast delivery. However, according to the Committee, Amazon and other such sites turn a blind eye. As a result, sellers get an illegal competitive advantage over those who do business honestly. And more importantly, the state loses taxes. The evaluation of the tax Department, only last year and the year before was a shortfall of from 1 to 1.5 billion pounds.
The Committee believe that Amazon and eBay are insufficiently demanding with regard to the sellers and did not actively cooperate with the tax authorities, in particular, do not provide data that would help to identify defaulters.