Independent retailers have welcomed government proposals to tackle VAT fraud through online marketplaces, describing the move as a positive step towards creating a fairer trading environment for UK retailers while urging ministers to move quickly from consultation to implementation.

The British Independent Retailers Association (Bira), which has been campaigning on the issue for more than 18 months, said it was pleased to see action on extending online marketplace VAT liability rules to UK-based businesses, helping to address unfair competition faced by compliant retailers.

Andrew Goodacre, CEO of Bira, said: "We are pleased that the Treasury has acted on our campaign to streamline the rules on VAT charges for online marketplaces. This proposal goes some way towards evening up the playing field for UK high street retailers who have been fighting for survival against unfair competition.

"The current regime has long been ripe for reform. Honest retailers who pay the correct taxes should not be disadvantaged by businesses that exploit complexity in the system or fail to meet their VAT obligations.

"We welcome the consultation and will engage fully with the process. The government has recognised that VAT non-compliance can distort competition and disadvantage legitimate businesses, both online and on the high street.

"We already have a system in place for overseas sellers using online marketplaces, which demonstrates that marketplace responsibility can work effectively. We hope the consultation proceeds as quickly as possible and leads to practical measures that support compliant retailers without creating unnecessary burdens."

Bira will respond to the consultation on behalf of its members and continue to campaign for measures that ensure fair competition between online and high street retailers.

The association represents over 6,000 independent businesses across the UK and has consistently called for stronger action to tackle VAT fraud and create a level playing field for responsible retailers.