Value Added Tax Act 1994 section 77BA

Joint and several liability: non-UK sellers in breach of Schedule 1A registration requirement

Section 77BA makes online marketplace operators jointly and severally liable for VAT owed by non-UK sellers who trade through their platform without having registered for UK VAT as required under Schedule 1A, where the operator knew or should have known about the registration breach and failed to act within the specified timeframe.

• Where a non-UK seller is required to register for VAT under Schedule 1A but has not done so, and the online marketplace operator knows or should know about this breach, the operator must act to remove the seller from its platform
• The operator has 60 days from when it first knew or should have known of the breach to ensure the unregistered seller no longer offers goods for sale through the marketplace; failure to do so triggers joint and several liability
• The operator becomes jointly and severally liable for all VAT payable by the unregistered seller on taxable supplies of goods made through the marketplace during the relevant period, which runs from when the operator first knew or should have known of the breach until the seller becomes properly registered
• Where the operator has already been served a notice under section 77B in respect of the same seller, the relevant period is adjusted to avoid overlap with any period already covered by a joint and several liability under that separate provision

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