MISSING TRADER INTRA-COMMUNITY (MTIC) FRAUD

On 17 June, the EU Parliament Research Service published a briefing paper on MTIC fraud.  It provides an overview of the existing rules concerning VAT, an explanation of MTIC and possible solutions to the problem.  It explains that MTIC fraud and “carousel fraud” are forms of fraud in which a business disappears without paying the VAT due to the tax authorities or requesting a VAT refund from the government. In both cases the VAT can be seen as a profit for the ‘missing trader’ who disappears with the money. For MTIC and carousel fraud cross[1]border trade is important as intra-community trade has a zero-rate VAT taxation. There are many different and complex versions of MTIC.

http://www.europarl.europa.eu/RegData/etudes/BRIE/2021/690462/IPOL_BRI(2021)690462_EN.pdf

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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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