UK Regulations for Online Goods and Service Providers

According to HMRC, if an app or website links buyers and sellers to proviFde goods or services, it will be included in this category.

Furthermore, the platform needs to store or readily compute the amount paid to sellers, even if that is done through a third party.

If a platform is based in the UK, is managed there, or is incorporated under UK law, it must register as a digital platform with HMRC. Even if they have no sellers that need to be reported, they must still register as a reporting platform (this is known as an excluded platform).

Sellers who provide or receive payment for goods or services and who either reside in the UK or oversee rental properties there must be reported by digital platforms.

Sellers are exempt from reporting to HMRC if they earn less than £1,700 for fewer than 30 sales annually. This is because their sales may not be taxable income, though we always advise consulting your adviser, and they are unlikely to be regarded as trading (see our earlier blog on the factors HMRC considers when determining trading status).