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Vat Fraud: Mtic & Mtec - The Tradable Services Problem, Richard Thompson Ainsworth
Vat Fraud: Mtic & Mtec - The Tradable Services Problem, Richard Thompson Ainsworth
Faculty Scholarship
Tradable services – VoIP termination services, mobile minutes, software as a service (SaaS), or almost any service bought or sold in the “cloud” – are a distinct class of taxable supplies. These service-based supplies both resemble and differ fundamentally from goods. They also differ from services that are consumed-on-purchase (consumed services).
Tradable services are designed from the beginning for re-sale. They are hybrid supplies that behave commercially like goods, but have functional attributes that make them hard to distinguish from services generally. When determining the place of supply/ place of taxation for these kinds of supplies, their hybrid character presents …
Mtic (Vat Fraud) In Voip - Market Size $3.3b, Richard Thompson Ainsworth
Mtic (Vat Fraud) In Voip - Market Size $3.3b, Richard Thompson Ainsworth
Faculty Scholarship
In the beginning, the VAT fraud known as missing trader intra-community (MTIC) fraud appeared to be a UK problem concentrated in the cell phone and computer chip markets. MTIC has mutated (to other commodities) and migrated (to other Member States). This paper describes how this fraud operates in the VoIP market, and how in this mutation it is no longer confined to the EU, but can infiltrate any VAT/GST anywhere.
Canada, Botswana, Japan, Iceland and Jamaica (to mention a few jurisdictions) have consumption taxes that are just as vulnerable as is the EU VAT to VoIP missing trader fraud. It …