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The Impact of Deemed Supplier VAT Obligations on Online Marketplaces: Challenges and Risks

  • Operational challenges and market risks may lead to a retreat from full liability for deemed supplier VAT obligations for online marketplaces
  • Introduction of deemed supplier VAT obligations has created challenges for platforms, sellers, buyers, and tax authorities
  • Recent failure in the EU to agree on deemed supplier requirements for ride and accommodation sharing platforms
  • Obligations make marketplaces responsible for collecting and remitting VAT on behalf of sellers
  • Designed to improve tax compliance and simplify the VAT system
  • Tax authorities see this as a remedy for lost VAT revenues due to online marketplace success.

Source: vatcalc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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