VAT news tagged as "VAT fraud"


China VAT lotto takes on rampant fraud

April 12th, 2018

China’s Shanghai trials with a weekly anti-tax fraud cash prize draw for VAT invoices has been declared a success. Since the start of 2018, Shoppers can upload barcodes on their VAT invoices to a phone app for a potential immediate €12.50 (equivalent)  prize. Their invoices are also entered into a weekly draw with a top …


EU blockchain to solve VAT fraud?

April 11th, 2018

This blog first appeared in International Tax Review Should we ignore the bitcoin speculative bubble and hacking scare stories as the fireflies before the technological storm? Could blockchain solve the EU’s €50billion VAT fraud menace, and revolutionise tax reporting? Or is blockchain’s hype overblown and optimism misplaced? Are the considerable concerns about its electricity-guzzling dependency and …

United Kingdom

UK HMRC Seller VAT fraud eBay and Amazon deal

April 6th, 2018

The UK’s HMRC is to publish in April an agreement it has made with major online marketplaces, including Amazon and eBay, to combat VAT fraud on their websites by sellers. The agreement was committed to following a December 2017 recommendation by the Parliamentary Public Accounts Committee, PAC. Any marketplace failing to meet the requirements of …


EU VAT fraud reverse charge evaluation

March 9th, 2018

The European Commission has published this week an impact study of the effectiveness of the anti-VAT fraud domestic reverse charge mechanism. The EU VAT Directive’s Article 199a permits the emergency imposition of the reverse charge (zero-rated VAT) on domestic VAT transactions of certain, high fraud risk goods and services. This was introduced to fight missing trader …


EU questions VAT Split Payment benefit

January 17th, 2018

A European Commission study into the benefits of Split Payments as a VAT collection tool, aimed at combating VAT fraud, has cast doubt on the cost / benefits.  The report concludes that the administrative and technology costs of running, tracking and reporting on such a scheme would outweigh any additional VAT recouped. The study reviewed …


EU VAT Gap falls to €152bn

September 28th, 2017

The latest analysis of missing EU VAT (the ‘VAT Gap’) from fraud, bankruptcies and poor administration, has fallen to €151.5 billion in 2015. This compares to €159.5 billion in 2014. The latest estimate of unaccounted for VAT represents 12% of the anticipated collections based on economic activity and VAT rates across the 28 EU member states.  …

United Kingdom

UK fulfilment centre VAT fraud update

July 27th, 2017

The UK’s HMRC has updated plans to impose VAT fraud customer due diligence requirements on fulfilment houses. The Fulfilment House Due Diligence Scheme (FHDDS) regime was to be introduced in primary legislation this summer, but was delayed due to the snap general election.  HMRC has now confirmed that the measures will be included in an …

United Kingdom

UK election derails £1.5bn e-commerce VAT fraud measures

May 2nd, 2017

Last week’s announcement of a 8th June general election caught the whole country by surprise, adding to the general Brexit-fuelled political and business insecurity.  This fallout from the announcment included the postponement of a range of e-commerce anti-VAT fraud measures, contained the 2017 Finance Bill, set to hit the e-commerce sector. The news will be welcome …