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F5. Online marketplaces
General conditions (supply facilitated by online market place)
"(1) This section applies where—
(a) a person (“P”) makes a taxable supply of goods in the course or furtherance of a business to another person (“R”),
(b) that supply is facilitated by an online marketplace, and
(c) one of the following applies—
(i) the imported consignment condition is met, or
(ii) the supply of goods to R does not involve those goods being imported, but P is established outside the United Kingdom." (VATA 1994, s.5A)
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Imported consignment condition
"(3) The imported consignment condition is met where—
(a) the supply of the goods to R involves those goods being imported,
(b) the intrinsic value of the consignment of which the goods are part is not more than £135, and
(c) the consignment of which the goods are part—
(i) does not contain excepted goods, and
(ii) is not a consignment in relation to which a postal operator established outside the United Kingdom has an obligation under an agreement with the Commissioners to pay any import VAT that is chargeable on the importation of that consignment into the United Kingdom." (VATA 1994, s.5A)
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- Excepted goods
(4)For the purposes of subsection (3)(c)(i), “excepted goods” means goods of a class or description subject to any duty of excise whether or not those goods are in fact chargeable with that duty, and whether or not that duty has been paid on the goods." (VATA 1994, s.5A)
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Exclusion: supplier not established in UK and customer provides VAT number
"(1A) But this section does not apply in a case where P is established outside the United Kingdom and the imported consignment condition is not met if—
(a) R is registered under this Act,
(b) R has provided the operator of the online marketplace with R's VAT registration number, and
(c) the operator of the online marketplace has provided P with that number and details of the supply before the end of the relevant period." (VATA 1994, s.5A)
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- VAT registration number​
"“VAT registration number” means the number allocated by the Commissioners to a person registered under this Act." (VATA 1994, s.5A)
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- Relevant period​
"“relevant period” means the period of 7 days beginning with the day on which the supply is treated as taking place under section 6 or such longer period as the Commissioners may allow in general or specific directions;" (VATA 1994, s.5A)
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Effect: deemed supply to and by operator of marketplace
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"(2) For the purposes of this Act—
(a) P is to be treated as having supplied the goods to the operator of the online marketplace, and
(b) the operator is to be treated as having supplied the goods to R in the course or furtherance of a business carried on by the operator." (VATA 1994, s.5A)
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