The UK plans to close the VAT loophole in online sales, targeting local sellers.

The UK has proposed allowing online platforms to collect value-added tax on behalf of local businesses to plug a loophole that has cost the government hundreds of millions of pounds annually. The proposal aims to reform value-added tax rules. Amazon and other retailers claim that the current rules have a "structural loophole" and treat local businesses and those operating overseas differently, leading to a risk of abuse within the system. The proposal aims to reform the current value-added tax rules, which treat local businesses and those operating overseas differently, leading to a risk of abuse within the system. The government is considering two options, one of which is to extend the "deemed reseller" system to local sellers, with one option targeting local businesses that exceed a specific sales threshold on a single online platform.