Anthony Eskander (KPMG) reports the various UK and EU measures to combat missing trader intra-Community fraud, which is said to cost revenue authorities around €60bn annually in tax losses.
MTIC fraud VAT fraud and carousel fraud are terms used to describe when a person fraudulently takes advantage of the European single market rule which provides for the sale of goods between EU member states VAT free. According to Europol missing trader intra-Community (MTIC) fraud costs revenue authorities around €60bn annually in tax losses.
How MTIC and carousel fraud works
The following example shows how the fraud can be achieved.
An innocent EU supplier sells an item for £100 to a missing trader VAT free in accordance with the EU single market rules.
The missing trader sells the item on to an innocent customer for £90 ...
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Anthony Eskander (KPMG) reports the various UK and EU measures to combat missing trader intra-Community fraud, which is said to cost revenue authorities around €60bn annually in tax losses.
MTIC fraud VAT fraud and carousel fraud are terms used to describe when a person fraudulently takes advantage of the European single market rule which provides for the sale of goods between EU member states VAT free. According to Europol missing trader intra-Community (MTIC) fraud costs revenue authorities around €60bn annually in tax losses.
How MTIC and carousel fraud works
The following example shows how the fraud can be achieved.
An innocent EU supplier sells an item for £100 to a missing trader VAT free in accordance with the EU single market rules.
The missing trader sells the item on to an innocent customer for £90 ...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
