MPs in the public accounts committee have told the tax man to get tough on VAT fraud on line and accused big names such as Amazon and Ebay of not taking the issue seriously.
Responding to the ‘Tackling online VAT fraud and error’ report, Mike Cherry, from the Federation of Small Businesses, said: “No business, at home or abroad, should be gaining an unfair advantage through tax evasion.
"The UK’s small retailers have enough to worry about with spiralling input costs and flagging consumer demand. The last thing they need is to be undercut by online firms that are evading VAT.
“The PAC’s recommendations mark a welcome starting point for tackling the issue of online VAT evasion head on.
"The excessively complex VAT regime places significant burdens on small business owners. Sadly, the convoluted system leaves the door open to both evasion and honest mistakes.”