Sales Tax Articles
Sales Tax State Activity Update - June 2007
UK Reverse Charge Rules End the Free Ride of Carousel Fraud
In an attempt to combat fraud on certain Intra-Community supplies the UK has introduced new reverse charge rules effective 1 June 2007.
Under the new rules the VAT due on supplies of mobile telephones and computer chips will be accounted for and paid by the VAT registered customer of these goods instead of being collected and paid to the HM Revenue & Customs by the supplier.
The new rules have targeted mobile telephones and computer chips valued at £5,000 and over because they are the goods frequently used in Missing Trader Intra-Community (MTIC) fraud also known as carousel fraud.
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