VAT missing trader fraud is where the fraudsters obtain VAT
registration to acquire goods VAT free from other Member States.
They then sell on the goods at VAT inclusive prices and disappear
without paying over the VAT paid by their customers to the tax
authorities.
The individuals had set up and operated twelve companies located
in Kent, Sussex, London and the West Country in December 1999 and
April 2000. The fraud involved the importation of computer parts
from countries within the EU.
A customs law enforcement spokesperson said:
"VAT missing trader fraud is a systematic
attack on the VAT system, detected in many EU Member States, and
carried out by serious organised criminals. Customs are determined
to clampdown hard on this type of crime."</>
Customs have deployed 340 staff to tackle this type of fraud and
aim to have halved fraud losses by 2003 - 2004.
