Combating Carousel Fraud: The General Reverse Charge VAT

Journal
International
International VAT Monitor 2015 (Volume 26), No. 3
Fraud schemes, generally, exploit the application of the zero rate to cross-border trade. Most proposals try to tackle fraud by either taxing the transactions or securing payment. In this article, the authors take an opposite approach and describe a general reverse charge as a means to remove the incentive for VAT fraud.