VAT FRAUD – HOW CAN YOU PROTECT YOUR BUSINESS?
With the ever-changing pace in business and emerging markets, VAT Fraud is becoming more prevalent. The European Court of Justice in a number of cases concerning VAT fraud has held that:
To that end a taxpayer who unwittingly becomes involved in a transaction which is subsequently proved to be connected with a VAT fraud, could end up with an exposure to VAT, interest and penalties.
It is good business practice to undertake due diligence when entering into a business transaction, particularly with an unknown party. In order to help you avoid being an unwitting party to a VAT fraud, we have set out examples of reasonable steps you can take to establish the integrity of your customers, suppliers and supplies:
This is not an exhaustive list and Revenue recommends that these are supplemented where necessary in each of the above categories to ensure that you are not caught up in fraudulent transactions.