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VAT: Electronic Commerce

Volume 454: debated on Wednesday 6 December 2006

To ask the Chancellor of the Exchequer what effect on the income generated to the Exchequer has resulted from the introduction of VAT for non-EU businesses providing electronically supplied services to EU consumers since 2003. (104643)

The majority of VAT collected as a result of the change in the VAT rules is via the special VAT on e-services scheme for non-EU businesses. Since its introduction in July 2003, around £100 million has been collected in UK VAT.