RegulationCorporate GovernanceVAT evasion on imports tackled by European Council

VAT evasion on imports tackled by European Council

Measures adopted to strengthen battle against imports fraud

The European Council has announced plans to strengthen moves against VAT
evasion on imports.

Under the directive, conditions in which the importing of goods is exempt
from VAT if followed by a supply or transfer of those goods to a taxable person
in another member state, according to
tax-news.com

Provisions under the directive include the VAT identification number of the
importer issued in the member state as well as the customer, and evidence that
the imported goods are intended to be transported or dispatched across borders.

The European Commission has given a high priority to cracking down on VAT
fraud, particularly missing trader intra community (MTIC) fraud, also known as
carousel fraud.

The European Council said the import of goods is exempt from VAT if followed
by a supply or transfer of those goods to a trader in another member state.

‘Inadequate implementation of this exemption in national law has led to
difficulty in following-up the physical movement of the imported goods.
Experience shows the increasing use of this particular exemption in missing
trader fraud schemes,’ the Council said.

Further reading:

European
Commission probes privacy concerns over tracking technologies

BDO
wins High Court battle with HMRC over commission VAT

Related Articles

Corporate governance: staying ahead in accountancy

Corporate Governance Corporate governance: staying ahead in accountancy

3m Alia Shoaib, Reporter
One in 20 audit firms quit as market evolves

Audit One in 20 audit firms quit as market evolves

1y Kevin Reed, Writer
Colin: #EURef bankers a problem

Business Regulation Colin: #EURef bankers a problem

1y Taking Stock
PwC and Deloitte chiefs sign Remain letter

Business Regulation PwC and Deloitte chiefs sign Remain letter

1y Kevin Reed, Writer
Leader: Audit competition drives change, not necessarily quality

Accounting Firms Leader: Audit competition drives change, not necessarily quality

2y Kevin Reed, Writer
EU audit reform to open up £10bn market for firms

Accounting Firms EU audit reform to open up £10bn market for firms

2y Richard Crump, Writer
Best Practice: Saffery Champness managing partner Rob Elliott

Accounting Firms Best Practice: Saffery Champness managing partner Rob Elliott

2y Calum Fuller, Reporter
Standard Life Investments opposes EY's appointment as Shell auditors at AGM

Accounting Firms Standard Life Investments opposes EY's appointment as Shell auditors at AGM

2y Richard Crump, Writer