HMRC reviews telecoms tax to combat VAT fraud

HM Revenue & Customs is urgently changing the way it taxes telecoms companies because of signs that criminal gangs are exploiting the industry to carry out value-added-tax fraud. In a scam known as “missing trader” fraud, gangs exploit gaps in Europe’s VAT system at an estimated cost to the UK exchequer of £500m-£1bn a year. From next week, HMRC will switch the responsibility for collecting VAT from the suppliers of wholesale telecoms services to their customers, in an attempt to remove the opportunity for fraudsters to steal the tax paid. Lees verder:

 

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