Amazon and eBay face new tax rules in bid to save the high street

• Ministers are reportedly planning a tax crackdown on major online marketplaces like Amazon, eBay, and Temu to ensure VAT is collected from third-party sellers.
• The measures – which were reported by The Times – target overseas retailers, particularly Chinese sellers, who evade the 20 per cent VAT to undercut UK high street competitors.
• The policy is expected to raise up to £1bn, which will be used to fund business rate cuts for local high street shops and family businesses.
• Tax experts have welcomed the tighter rules but warned that online platforms should collect all VAT on their sites to close remaining loopholes.
• The policy proposal comes alongside IMF forecasts upgrading UK economic growth for 2026 to 1.3 per cent, driven by artificial intelligence.

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