Handset market updates
VAT issues: And end in sight?
To counter the apparent extensive problem of MTIC fraud, ( the UK alone lost approx € 12.6 billion due to it) the British Government were set to begin the practice of reverse charges amongst mobile phone traders, allowing them an eight week period of grace to adopt the requirements necessary. As soon as the derogation has been agreed upon, it will, under reverse charge accounting be the responsibility of the purchaser, rather than the seller, to account for VAT on the transaction.
All of us in the industry, are impatient to see this problem dealt with once and for all; this reverse charge mechanism will hopefully put an end to the bad elements in the trade. But, the transition to the new system is probably going to be a daunting experience for many traders. Wait and see..
Comments
Anonymous @ 10:32 GMT, Nov 22So this means that the people who are earning out of VAT-frauding, invented this system in the first place? It is not more then logical that the system all over Europe will eventually turn to this system. It will eliminate most possibilities to commit fraud like criminals have done the past 15 years. Unfortunately whenever people and large amounts of money come together, there are people taking advantage from it (by abuse). We are afraid that the accent of criminal activities after the reverse charge will turn more to personal frauding, threats, burglary, blackmailing etc. instead of organised crime by using complex bookkeeping systems.
Anonymous @ 10:54 GMT, Nov 17Agree 100%. All the big guns, fat cats, and big wigs are on the make on this. That's why it was invented in the first place, and that' why it will remain. F**king scandalous!!
Anonymous @ 19:53 GMT, Nov 16We all know the reverse charge will never happen however much we honest traders want it to happen. To many powerful people making too much money!