CIOT comments on Reverse Charge Mechanism

The CIOT supported a limited reverse charge covering goods most closely linked to goods when previous consultations were undertaken on the combating of fraud. However, even at that stage, the CIOT suggested that a better solution would be to look to more real-time monitoring of significant transactions. This was because, based on values that were disclosed in cases in the United Kingdom, it appeared that the major frauds involved relatively high value transactions. There were also suggestions at the time by the Government that, in fact, the vast majority of “MTIC” or “carousel” frauds were being undertaken by a very small number of crime gangs.