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Mtic Vat Fraud

VAT fraud has become increasingly prevalent in recent years. Forms of this type of fraud range from simple VAT evasion, where VAT collected by an individual on taxable goods or services supplied is not paid back to the Revenue, to more complex carousel frauds which often cross a number of jurisdictions.

MTIC (Missing Trader Intra-Community) fraud, a type of carousel fraud, is one of the most complex and lucrative forms of VAT fraud. It relies on the fact that goods imported from the EU are zero-rated for VAT. The fraud involves a trader importing goods from the EU, selling them, and defaulting on paying the VAT received from the sale. The goods are then sold on through a chain of shell companies at minimal mark-ups, eventually being exported back to the EU, with the exporter claiming back the VAT paid on the last sale. These cases often run to tens or hundreds of thousands of pages, involving complex chains of traders, freight forwarders, and hauliers. They inevitably involve investigations and evidence provided not only by HMRC and the police, but foreign authorities too.

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Mtic Vat Fraud

VAT fraud has become increasingly prevalent in recent years. Forms of this type of fraud range from simple VAT evasion, where VAT collected by an individual on taxable goods or services supplied is not paid back to the Revenue, to more complex carousel frauds which often cross a number of jurisdictions.

MTIC (Missing Trader Intra-Community) fraud, a type of carousel fraud, is one of the most complex and lucrative forms of VAT fraud. It relies on the fact that goods imported from the EU are zero-rated for VAT. The fraud involves a trader importing goods from the EU, selling them, and defaulting on paying the VAT received from the sale. The goods are then sold on through a chain of shell companies at minimal mark-ups, eventually being exported back to the EU, with the exporter claiming back the VAT paid on the last sale. These cases often run to tens or hundreds of thousands of pages, involving complex chains of traders, freight forwarders, and hauliers. They inevitably involve investigations and evidence provided not only by HMRC and the police, but foreign authorities too.

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