Vasile Puscas voices support for EC bid to clamp down on missing trader fraud
The proposal includes assessment methods and reporting tasks that would allow for an exact assessment of the measures for the taxation of the deliveries of certain products and services in the members states of the European Union.
‘I will recommend that this suggestion of the European Commission be urgently adopted because it will provide the possibility for more efficient fight against fraud, including in Romania, by a more consequent policy both at a national level and at the level of the entire European Union,’ the release quotes Puscas as saying.
The missing trader fraud, or the missing trader intra-community or carousel fraud is the theft of Value Added Tax (VAT) from a government by organised crime who exploit the way VAT is treated within multi-jurisdictional trading where the movement of goods between jurisdictions is VAT-free.
This allows the fraudster to charge VAT on the sale of goods, and then instead of paying this over to the government’s collection authority, simply absconds, taking the VAT with him. The term ‘missing trader’ refers to the fact that the trader goes missing with the VAT, ‘carousel’ refers to the way that the fraud in a more complex manner sees VAT and goods passed around companies and jurisdictions, similar to how a carousel travels round.