Thousands of overseas sellers have been evicted from online markets in the UK like Amazon and eBay due to a ride of lives.
Businesses, mainly from China, sold items including British flags, telephones and fake eyelashes but evaded VAT.
HM Revenue and Customs (HMRC) sends notifications to seven different online sales sites if it discovers that companies do not pay the correct VAT.
It is said that 4,600 sellers have been "marked in red" this way. [1
The new rules were introduced in 2016, but the repression was intensified in the last year.
The tax authority claimed to have recovered around £ 200 million in VAT after the sellers registered to pay VAT following a notice, officially called a joint and several liability statement.
Since 2016, the number of applications for registration of VAT has risen to 58,000 compared to 1,650 applications between 2015 and 2016.
The figures show that the HMRC, working closely with the major online markets, is making real progress to address this serious and harmful evasion, "said Mel Stride, Treasury's financial secretary.
Last year, a report from the public The commission for MPs from MPs stated that up to 1.5 billion pounds were lost by third-party sellers on the online markets without charging UK sales tax.
The committee criticized the HMRC to be "too conservative" the "scammers".
The fraud has increased because foreign companies selling goods to UK buyers are keeping some of their stocks in UK warehouses to provide delivery the next day exive.
If items are shipped from UK soil, sellers have to charge 20% VAT.