VAT and the Sharing Economy: Call for Evidence

The Sharing Economy has empowered individuals and business to connect with consumers and provide services to them on a far larger scale than previously possible. This activity is usually facilitated by digital platforms which can be based anywhere in the world.

This creates huge opportunities for the UK's economy and society through stimulating enterprise and aiding optimal use of scarce resources. However, the government is also aware that it could potentially create certain challenges to the VAT tax base.

The aim of this call for evidence is to test the government's view of the VAT challenges the Sharing Economy creates. We welcome stakeholder views, both those who may share our initial assessment and those who bring challenge to that perspective as well as evidence of other challenges that we have not yet considered. We are also seeking stakeholder views on potential next steps in evaluating and responding to these challenges.

This call for evidence closed on 3 March 2021.

Responses were received from a range of stakeholders. The summary of responses document outlines these and sets out the government's response.