The Chancellor, John Healey, will make online marketplaces such as Amazon and eBay responsible for collecting the VAT owed by sellers on their platforms, according to a report in The Times. The Treasury has not confirmed the plan.
The Times reportedly says the rule would cover retailers with annual turnover above £90,000, wherever they are based. The Standard relayed the story on 18 October.
According to the report, the measure could raise up to £1bn for the Treasury. That figure has not been independently checked, and the report does not say what period it covers.
The money is reported to pay for a cut to the business rates threshold for high-street firms. Like the VAT change itself, that link is unconfirmed until the Budget statement on Wednesday 28 October.