EC adopts proposal to combat CO2 fraud
The EU Commission has adopted a proposal for an optional and temporary application of the reverse charge mechanism in the CO2 market – so that buyers and sellers pay value-added tax (VAT) at the same time – to counter carousel fraud in the sector.
Several European markets have seen increasing instances of this type of fraud, when a trader effectively steals VAT from a country’s government by charging the tax on the sale of the product, but does not pay this to the country’s collection authority. CS
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