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
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
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.
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