EU Must Fight VAT Fraud Now
May 31, 2006 12:00 AM
Sharon Bowles MEP, Liberal Democrat Economic Spokesperson, has today given a cautious welcome to the Commission's plans to launch a debate on combating tax fraud.
Sharon Bowles said:
"I certainly don't object to the Commission looking into a full review of this issue but it must not stop firm action now. The current VAT system is beset with fraudsters and trading scams that simultaneously claim back VAT, charge a VAT inclusive price to the consumer, and don't pay a penny of it to the taxman.
"We need to address this "carousel fraud" immediately by allowing countries to apply a targeted reverse charge system for areas where this VAT fraud is rife - notably mobile phones and computer chips. Further measures could be added after the review. "
Last year HM Revenue & Customs estimated that VAT fraud was costing the UK over £1bn a year.
ENDS
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