U.K. Government Aiming to Tackle Technology VAT Fraud

London -- Her Majesty's Revenue and Customs (HMRC) has
called on the European Commission to allow the U.K. to change
laws concerning technology VAT fraud. The German and Austrian
governments have made similar requests. The VAT fraud in
question, known as "carousel fraud", involves a company charging
VAT on wholesale technology goods like computer components or
mobile phones, but neglecting to return the tax to the government.
Technology companies purchase goods only to discover at a later
date that they are unable to recover VAT. The U.K. wants to opt
out of European laws governing VAT in order to better tackle the
problem, which, it claims, costs the government more than £1
billion a year.
http://www.hmrc.gov.uk/whatsnew.htm