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.


Any modest contributions for my time and ongoing expenses are welcomed!  I have a page, where contributions start as low as $3, at https://www.buymeacoffee.com/KoIvM842y

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

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: