The scam is known as Missing Trader Intra-Community
fraud and it costs Europe PS74billion a year, according to the EU law enforcement agency Europol.
Carousel or missing trader intra-Community
(MTIC) fraud is based on the cross-border exchange of commodities, whereby a trader purchases goods from a foreign supplier tax free and resells them on the domestic market charging VAT, which it does not report to the tax authorities.
The crime--also known as missing trader intra-community
fraud (MTIC) has sparked a series of court cases and police investigation within Britain, but there has also been a legislative response.
Measuring Britain's trade with the rest of the EU accurately is proving difficult because of the sheer volume of a VAT scam known as missing trader intra-community
(MTIC), or "carousel" fraud.
Carousel fraud, also known as Missing Trader Intra-Community
fraud, involves goods bought VAT-free from other EC member states and sold by fraudsters at VAT inclusive prices.
Methods of cheating the revenue vary but the main problem experts concluded remained missing trader intra-community
(MTIC) fraud, or "carousel", especially trade in computer and mobile telephone chips.
The Government is to seek permission from the EU to amend the VAT rules to help stamp out Missing Trader Intra-Community
dodges that have been costing the UK Exchequer billions of pounds.