Carousel fraud discovered in gas and powers sector

A carousel or missing trader fraud is reported to have been uncovered for the first time the gas and power sector.

According to the Daily Telegraph, the fraud, which involves the theft of VAT, has prompted HMRC to warn energy traders at investment banks to be on the alert for fraudsters.

Carousel fraud involves involving the importing VAT-free of goods from the continent, trading computer components, then selling them on with a VAT charge. The seller then disappears without paying the VAT to the taxman.

In the last the government abolished VAT in carbon trading to head off the risk of fraud.

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EU reverse VAT to beat carousel fraudsters