In April 2018, the British government called on online marketplaces like Amazon and eBay to commit publicly to tackling value-added tax fraud among traders using their online platforms. Alibaba is “currently discussing arrangements” with the UK’s tax authority on the agreement, a spokeswoman told Bloomberg Tax in a May, 18 statement.
Cracking down on value-added tax fraud among online marketplaces has become a priority for the UK due to foreign traders avoiding paying taxes, a key source of government revenue, on their sales in the country. This evasion hurts British traders’ competitiveness as they must charge the levy.
Most of Alibaba’s revenue comes from China, but its foreign activity is growing. Overseas revenue for the company rose 6.5% between 2015 and 2018, according to Bloomberg data.
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