When businesses register for VAT, HMRC does not verify whether they are UK–established in most cases.65 HMRC explained all VAT registrations are risk assessed and that just over 50% of VAT registrations require further checks which can, but do not routinely, include address validation.66 HMRC told us that is has confidence that its VAT register, combined with due diligence rules for online marketplaces, are working well, although it acknowledged that overseas retailers selling through online ...

When businesses register for VAT, HMRC does not verify whether they are UK–established in most cases.65 HMRC explained all VAT registrations are risk assessed and that just over 50% of VAT registrations require further checks which can, but do not routinely, include address validation.66 HMRC told us that is has confidence that its VAT register, combined with due diligence rules for online marketplaces, are working well, although it acknowledged that overseas retailers selling through online marketplaces was a compliance risk which it must constantly monitor.67 Type: conclusion | Number: 22 | Response status: not_addressed Government response: 5.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2026 5.2 HMRC already has robust controls in place but will continue to strengthen them over time. Elements of the recommendation are already embedded in current ways of working. HMRC is conducting a fea