VAT: Tax Evasion

(asked on 25th July 2019) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government what discussions they have had with the government of China in relation to addressing online VAT fraud; and what steps they are taking as a result.


Answered by
Lord Young of Cookham Portrait
Lord Young of Cookham
This question was answered on 6th August 2019

HM Revenue & Customs (HMRC) have increased their engagement with China Customs through the Fiscal Crime Liaison Officer in Beijing. The engagement is designed to tackle undervaluation fraud, including online VAT fraud, with the help of the Chinese authorities. This has included a memorandum of understanding, set up in 2018, leading to a joint working group and a series of commodity-focused exercises.

In addition, HMRC’s primary focus in tackling the VAT issue has been with the online marketplaces through which those sellers operate, as this has proven to be an effective way of improving their compliance. The Fulfilment House Due Diligence Scheme supports this compliance activity by regulating the sites where overseas sellers store imported goods prior to their sale.

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