Breakfast briefing: Amazon VAT issue and Zalando sales

Amazon and eBay sellers in £1.5bn VAT dodge

Amazon and eBay have failed to remove overseas sellers flouting value added tax (VAT) despite being informed of the sellers’ non-compliance, helping companies to avoid up to £1.5bn in tax, The Times reports.

According to a report by the National Audit Office (NAO), the sellers were mostly based in China to handle undervalued or misclassified goods.

Retailers must collect the VAT, which is charged at 20% on goods sold in the UK, and pay it to HM Revenue & Customs.

The NAO report suggests failure to compliance owing to fraud or error.

Amazon said it is the legal responsibility of the sellers to declare any VAT that arises from the sale of goods or services.

Zalando reports boost in sales

Zalando has confirmed a 22% to 24% increase in first-quarter sales to €971m (£813m) to €987m, Drapers reports.

Co-chief executive Rubin Ritter said: “We continue to successfully execute towards our goals and started 2017 with strong growth momentum.”

“We are fully on track with our long-term aspirations and keep expanding our business at high speed, while investing into our consumer experience and brand partner proposition.”