Reckon: Reverse charging to prevent VAT fraud

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Brief paper (2 pages, PDF) commenting on the potential impact of reverse charging for VAT.

The paper is motivated by recent efforts by the UK, Germany and Austria to introduce reverse charging as a means to combat VAT fraud.

Reverse charging is aimed at reducing the opportunities for Missing Trader Intra-Community (MTIC) fraud. But it also affects the compliance burden to businesses.

The paper argues that while the UK's proposed changes are likely to eliminate carousel fraud within certain product categories, the effect on acquisition fraud and on black market fraud is uncertain.

For further information or advice please contact Shankar Rajagopalan.

Filed under Reckon LLP, Tax fraud, VAT.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

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