HMRC targets online sellers over unpaid VAT HMRC is chasing Amazon, eBay and overseas sellers who use online marketplaces for £585m in unpaid VAT. While some demands have been sent to the large internet firms, in some cases officials have sent VAT bills directly to foreign sellers who market goods to UK buyers. Firms with a turnover of more than £85,000 a year have to register with HMRC and pay VAT of 20% on goods sold online, with rules introduced in 2016 giving the taxman the power to bill online marketplaces if sellers evade tax. The Revenue has contacted sellers over £315m in tax owed, with Amazon and eBay contacted over a further £270m. George Turner, at TaxWatch UK, has called for tougher rules, warning that VAT fraud is “devastating to legitimate British businesses”.