RENEWABLE ENERGY: RISK OF VAT FRAUD RELATING TO GUARANTEES OF ORIGIN

Out-Law on 29th May published an article saying that HMRC is warning energy businesses of the risks of being caught up in VAT fraud relating to Guarantees of Origin (GO).  It explains that electricity suppliers in the UK must disclose annually to customers and potential customers the mix of fuels used to generate the electricity they supply.  This must be backed up by evidence in the form of EU GO, referred to as renewable energy guarantees of origin, or ‘REGO’, in the UK, GO can be traded separately from the electricity they relate to.  GO trades can be used to defraud HMRC of VAT by fraudulent traders buying the certificates from another EU Member State VAT-free, onward selling to UK purchasers charging VAT but then failing to pay that VAT to HMRC.  This is is a form of missing trader intra-community (MTIC) fraud.

https://www.out-law.com/en/articles/2019/may/renewable-energy-risk-of-vat-fraud-relating-to-guarantees-of-origin/

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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