U.K. Treasury: New E-Marketplace Laws Mark ‘Significant Change’

The U.K.’s new laws to combat tax evasion among traders using e-marketplaces like Amazon.com and eBay Inc. will fundamentally alter how the companies operate, according to a Treasury minister.

Targeting value-added tax fraud among overseas e-marketplace traders, the legislation will be “a significant change to the way in which these marketplaces operate,” Mel Stride, the U.K. Treasury’s financial secretary, told Bloomberg Tax in an exclusive interview. “Online marketplaces have a really positive role to play within the economy. But they do pose a particular problem when it comes to VAT.”