New VAT rules to curb carousel fraud set for June

New rules designed to combat the spread of VAT
carousel fraud
will take effect from 1 June 2007, HM Revenue
& Customs
has revealed.

HMRC’s new ‘reverse charge’ policy will mean that only the last retailer to
sell imported goods to a shopper will charge VAT on the goods. Only mobile
phones and computer chips are affected.

Carousel fraud cost the government between £2bn and £3bn in 2005-06.

Further reading:

Managing finances: fraud fight

New national authority to fight fraud

Treasury finally secures reverse charge VAT

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