EU VAT authorities now routinely audit e-commerce sellers, matching platform data against returns. The article outlines the audit process, DAC7 obligations, and record-keeping requirements.

EU VAT compliance for U.S. sellers is complex, with new changes effective 1 July 2026. The EU removed the €150 de minimis exemption, so customs duties now apply to all imports, including those under €150. U.S. sellers must use the Import One Stop Shop to collect VAT at checkout for orders under €150.

UK: HMRC is consulting on expanding deemed supplier rules for online marketplaces to include UK-based vendors, aiming to curb VAT fraud. The consultation will run until 18 August 2026, and stakeholders are invited to submit views.

UK: The First-tier Tribunal ruled that HBS Enterprises Ltd, a UK-established business, remains liable for VAT on marketplace sales, despite HMRC’s misclassification as a non-established taxable person. The ruling confirms that the deemed supplier provision does not apply when the vendor is established in the UK, and that double taxation is avoided.