Computer chip reseller Bond House hit the headlines when its May 2002 VAT return was selected as a test case for so-called non-economic activity. The company subsequently won a landmark victory against Customs in the European Court of Justice. Here, its former director Mike Cheetham outlines why he thinks reverse charging will open the door for more fraud, not less.
I have four concerns about the reverse charge. The first two concern new types of fraud that will emerge following its introduction, slated for June 1.
What reverse charging does is shift the full collection of VAT from one end of the supply chain to the other áa