SIR - VAT fraud has grown so fast ITS impact is actually beginning to throw doubt on the veracity of UK trade figures.

Nonetheless, the Government's policies continue to exacerbate the situation. For example, it would be a simple process to significantly cut down on VAT fraud if organisations were able to put in place proactive checks of the VAT numbers of suppliers against an approved database. Alas, that is not allowed. HM Revenue and Customs holds the entire database of VAT-registered entities in the UK. An approach mirrored in every other European country. That said, it is impossible for organisations to check a given supplier's VAT details to ensure the validity of that company. As a result it is simplicity itself to either create fake VAT numbers or commit identity theft by stealing a number.

Why is Her Majesty's Revenue and Customs so adamant that VAT information - which is printed on every invoice - cannot be checked, particularly when VAT fraud is not only costing the Treasury so much money every year, but is also quite possibly skewing the balance of trade figures?

It's now high time the Government introduced new legislation that will provide companies with access to the relevant VAT information and drive down the volume of fraud across the UK.

Alan Livesey Director IDS

Source

SMT