VAT carousel

[italkcash]

A typical scam on the market is to rip the government of money for the VAT. Especially Europe is facing a big problem with the VAT fraud today and more and more cases are appearing all over. Especially the UK has been hit hard and more than 90 Billion pounds have disappeared from the country as people have hit the system hard by scamming the VAT.

The fraud depends on the ability of criminals legitimately to import goods free of VAT from within the European Union.

They then charge VAT when they sell on the goods to the supply chain but instead of handing over the tax to the government they simply keep it and disappear.


The losses are multiplied if the goods are then re-exported, allowing the final trader to reclaim VAT he has paid.

If the goods go round and round in an elaborate circle through several countries - hence the name "carousel" - the losses to the government multiply rapidly.