VAT news tagged as "VAT fraud"


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 …


Italy extends VAT split payments

April 15th, 2017

Italy has been granted approval by the European Commission to continue the use of anti VAT fraud split payments regime with state organisations, and to extend the measures to state-owned companies and stock market quoted companies. VAT split payments Where an EU member state believes, there is significant evidence of VAT fraud, it may apply …


Italy VAT fraud measures

February 8th, 2017

Italy has proposed a new round of anti-VAT fraud measures.  Italy has the largest VAT Gap – the difference between expected VAT collections and actuals – in the European Union.  It accounts for almost 25% of all missing EU VAT. The measures include: Extension of Split Payments The extension of split payments, whereby customers pay …


Poland VAT fraud measures

January 4th, 2017

Poland has introduced a range of anti-VAT fraud measures from the 1 January 2017. These include VAT registrations are no longer granted automatically as part of a business’ incorporation process Agents registering businesses for VAT may be held jointly liable for VAT (limited to PLN 500,000) for up to 6 month after registration The VAT …


Venezuela offers discounted VAT on card payments

December 25th, 2016

Venezuela is to offer a 2% VAT rate discount to consumers purchasing goods or services by electronic payments, including credit cards and wire transfers. The measure is an incentive to avoid unrecorded, cash-based payments and reduce VAT fraud. The current standard VAT rate in Venezuela is 12%. The 10% discounted rate will apply only to …