TaxCorporate TaxVAT changes ‘will hurt carousel fraud fight’

VAT changes 'will hurt carousel fraud fight'

Planned changes to UK VAT system will undermine carousel fraud fight, say IVA


Gordon Brown
has been warned that proposals to simplify
the VAT system will undermine efforts to fight multibillion-pound carousel
fraud.

According to the International
VAT Association
(IVA), Brussels is considering proposals to allow
an increased range of business services to be traded across borders, which would
increase the risk of carousel fraud,
the FT
reports.

In a letter to Brown, the IVA said that proceeding with the proposal would
‘undermine Europe’s fight against VAT fraud and could further exacerbate the
significant deficts which already exist in certain member states’.

VAT fraud is estimated to cost the EU up to £41bn annually.

Further reading:

Lords call for radical changes to VAT system

Legitimate businesses affected by VAT crackdown

New VAT rules to curb carousel fraud set for June

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