As Forum members, can't we be expected to do a bit of research for ourselves- a simple Google will throw up lot of the information DJ alludes to in seconds. And just can't win can one - you post links and get told your links are 'boring' or 'lecturing' and if you don't ....
Anyway, here is part of the article from the Guardian on 1st of November- but with a bit of Googling you'd get many man more:
Simon Bowers@sbowers00
Sunday 1 November 2015 15.18 GMT
The UK is expected to lose tens of millions of pounds in VAT avoidance and evasion this Christmas as a growing number of non-EU sellers, including hundreds from China, increasingly dominate sales of popular gifts on Amazon and eBay.
“There has been a huge increase in this trade which is very difficult to control,” a senior Brussels source told the Guardian. “The system is so complicated it’s open to abuse.”
Customs officers are aware that some overseas sellers are under-declaring the value of goods shipped to the UK and other European destinations in order to qualify for VAT exemptions on low-value packages.
“You’re getting packages which the [online] customer might have paid €100 [£70] for. And they’re coming in [through customs] identified as €20, or as gifts. And that’s the abuse,” said the source, who has close knowledge of the subject. This deception benefits the seller because lower-value goods – less than €22 in most EU member states and £15 in the UK – are exempt from VAT.
Growing numbers of businesses from China are using Chinese-run warehouses in UK port cities as staging posts, allowing them to offer eBay and Amazon shoppers rapid delivery as well as competitive prices.
In many instances, sellers are not disclosing VAT numbers in their eBay and Amazon listings. When asked by a customer for a VAT receipt, several have simply replied that they do not apply the tax.
All overseas businesses selling on eBay and Amazon must apply VAT on their UK sales from the moment they start selling to customers in Britain, regardless of how low their turnover is in the UK.
VAT can be avoided only if items are sold from outside the EU, are genuinely low-value and are imported in small packages already addressed to individual consumers.
The Guardian has seen evidence of Chinese sellers on eBay giving invalid VAT numbers as well as sharing, or cloning, numbers belonging to other businesses, all of which suggests there may be serious compliance failures or fraud.
Evidence was shown to eBay, which said cases highlighted by the Guardian would be discussed with HM Revenue & Customs.