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.
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Key Takeaways
The UK First-tier Tribunal decided that HBS Enterprises Ltd, a UK-established business, remains liable for VAT on marketplace sales, and the deemed supplier provision does not apply.
No, the UK First-tier Tribunal ruled that the deemed supplier provision does not apply to UK-established vendors such as HBS Enterprises Ltd.
HMRC misclassification can lead to double taxation, but the tribunal confirmed that the vendor remains liable for VAT under standard rules.
Primary source
Read the full article at 1StopVATThis summary was published on VATfaqs.com on 9 July 2026. It relates to VAT developments in United Kingdom. The original source is 1StopVAT.
