TAX NEWS: EU urged to cooperate against VAT fraud. By Dan Martin
European ministers are to be urged to collaborate better in efforts to combat VAT fraud.
European countries have lost around £40 billion over the last five years to so called "carousel fraud" in which criminals take advantage of the VAT-free charge on cross-border supply of goods.
Importers buy products from one member state, then add the VAT when they sell them in another country. The perpetrators then pocket the tax revenue.
European Commissioner L¡szl³ Kov¡cs proposes that to overcome the practice more efficient cooperation mechanisms are required between EU nations.