Vat carousel how does it work

Until now, carousel fraud has mainly been confined to mobile phones, computer chips and electronic devices like MP3 players.

See below for details on how the fraud works and some of the biggest carousel fraud scams in Britain. The fraud has high returns over a short period of time. An example of carousel fraud The attached diagram Word 37KB shows how carousel fraud works and will assist you in understanding the following example. It reclaims the VAT charged to it by Company C but because the sale is zero rated it declares no output tax.

Previous page Next page. Print this page. Is this page useful? Maybe Yes this page is useful No this page is not useful. Certain types of goods are used mobile phones or computer chips, or goods that are low bulk, high value and readily available in large quantities — so they can be moved quickly and easily and can be sold at a profit. Substantial proceeds can be earned by well organised VAT Carousel frauds. This project used the European Union as an example region. However, the project team also discovered cross border schemes operating in other countries such as Mexico and the Ukraine.

Press Release. This month, authorities from Europe and beyond have intensified their efforts to crack down on tax evasion. Crime areas. Forgery of money and means of payment. Economic Crime.