We think that some companies do not comply with VAT rules on UK sales. Items under £135 are also customs duty-exempt under the De Minimis Rule. These taxes must be collected to prevent an unbalanced business environment for UK businesses.

In the EU, sellers like online marketplaces based outside THE EU generally register via IOSS to ensure tax compliance for items under €150 sold into the bloc. We think the UK might be losing billions in taxes due to the <£135 customs duty exemption, and what we feel is insufficient enforcement of compliance with VAT regulations. We believe this creates an unfair disadvantage to UK businesses, which can lead to lost taxes and jobs. Enforcement must be strengthened.