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As previously stated (see 901120), a website, app or other software that exclusively facilitates the Relevant Activities of that business is not a Platform because it does not connect third party Sellers to users. Where the website, app or other software is also available for use by non-related, third-party Sellers, then the software would fall within the definition of a Platform.

However, even where this is the case, a Platform Operator (PO) that sells its own goods or services on its Platform is not a Seller on that Platform as it has not registered on a Platform for the purposes of being connected to users for the sale of those goods or provision of those services. Therefore, a single entity cannot be both a PO and a Seller in respect of the same Platform.

An entity related to a PO, however, can be a Seller on a Platform made available by that PO, as confirmed in the OECD FAQs. Whether or not in practice the related entity meets the definition to be a Seller will depend on the facts and circumstances.

Generally, HMRC would consider that related entities are unlikely to be ‘Sellers� within the meaning of these regulations, because they would not normally ‘register� on the Platform as a Seller.

For example, XYZ plc is the parent company of a retail group. It runs and maintains the group’s website. Products from XYZ group are available for purchase, but XYZ plc also allows non-related third-party entities to sell goods via the website too. The website is therefore a Platform for the purpose of these regulations. The goods sold by XYZ group on the website are actually owned by a subsidiary, W Ltd, and website users contract with W Ltd for the purchase of XYZ goods. W Ltd is not registered on the Platform for the provision of the sale of goods. In this case, HMRC would not normally expect W Ltd to be considered a ‘Seller� because it is not ‘registered� on the Platform as a Seller within the meaning of these rules, in the way that other non-related third-party Sellers would be registered on the Platform.

Other, non-related individuals or entities that are registered on the Platform as Sellers to sell goods via the XYZ website would be reportable. Any Related-Entity Sellers would only be reportable if they were ‘registered� on the Platform in the same way as other Sellers.

The same principle can be applied to the provision of services as to the sale of goods.