ECOFIN EU presidency's Steinbrueck says reverse charge VAT on agenda for April |
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Tue, 30 Jan 2007 16:25
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BRUSSELS (AFX) - German finance minister Peer Steinbrueck said EU finance ministers will discuss measures to combat reverse charge VAT fraud with EU tax commissioner Laszlo Kovacs at their informal gathering in April.'There are a range of open issues in these VAT package directives,' said Steinbrueck, adding that the EU's Germany presidency will 'work on the details' of a policy to combat reverse charge VAT fraud.'We will discuss this with commissioner Kovacs at the informal ecofin in April,' he told reporters at the closing press conference of the ministers' monthly meeting.VAT fraud costs 8-10 bln eur in Germany annually, he added.Steinbrueck added that any system to combat reverse charge fraud -- also known as 'carousel fraud' -- would not be compulsory.'We are not forcing anybody to introduce such a system -- it wouldn't affect cross-border trade,' he said.The reverse charge means that it will be the purchaser who has to claim for a VAT refund. Until now, the seller has sold goods without VAT and then claims for a refund.So-called 'carousel fraud' involves the same goods being traded around contrived supply chains within and beyond the EU, re-entering the UK on a number of occasions with the VAT being stolen each time. The goods most commonly associated with this fraud are mobile phones and computer chips.frances.robinson@afxnews.comfr/vm/harCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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ECOFIN EU presidency's Steinbrueck sees June end to deficit action on Germany 