HMRC has released a consultation document outlining intentions to apply reporting regulations for digital platforms that were first proposed by the Organisation for Economic Cooperation and Development (OECD) (OECD).
The OECD held a consultation in February 2020 on potential guidelines for how digital platforms should collect and report information about sellers’ income to tax authorities.
Websites and applications based in the UK will be forced to report to HMRC vendors’ income from the previous calendar year under the new rules.
The new guidelines, according to HMRC, will increase international cooperation in the transmission of information for tax purposes. They will also allow HMRC to swiftly and efficiently access data from platforms outside the UK, which should encourage compliance and boost transaction visibility.
The guidelines will also assist HMRC in detecting and addressing tax non-compliance, as well as help taxpayers get their taxes right.
The consultation on HMRC’s website will close on October 22, 2021, and may be viewed here