1 January 2021 saw the most significant change in the application of VAT to online transactions since the low value consignment relief (LVCR) VAT exemption was withdrawn from the Channel Islands in 2012. The end of LVCR marked the moment the UK tax authorities first began to take the threat of unfair competition by online retail seriously.

The introduction of the new rules for online marketplaces is only the latest step after the government made them responsible for collecting VAT on goods sold by overseas sellers in 2021. But much more needs to be done to end retail tax abuse.