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Business News
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New guidelines on VAT fraud
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UK Customs and Excise
(C&E) have released two new guides to help business avoid
being caught in VAT fraud through their suppliers. Under changes
to 'missing trader intra-community fraud' (MTIC), announced in
April, businesses buying and selling phones, computers or IT
equipment will be held jointly responsible if a firm in their
supply chain fails to pay value added tax (VAT) on goods entering
the UK.
According to C&E, MTIC fraud happens when a firm registers
for VAT in order to purchase goods VAT-free from an EU member
state, then sells them at a VAT-inclusive price in the UK.
The practice is a lucrative one for the companies involved, but
C&E says it distorts competition and can force legitimate
traders out of business.
Under the new rules, announced in the Budget, businesses linked
to VAT fraudsters will be given 21 days to prove that they were
unaware that criminal activity was taking place. Those that fail
to do so will share the VAT costs between them.
The guides were published following a two-month consultation.
For more information visit: |
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