Consultation on a
new online system to stop criminals evading VAT on road vehicles
they bring into the UK has been launched by HM Revenue &
Customs (HMRC).
The document - “Tackling VAT evasion on road vehicles brought
into the UK” - asks questions on the development of a new online
system to begin in 2013 that will ensure that the correct VAT is
paid.
David Gauke, Exchequer Secretary to the Treasury, said:
“If no action is taken, significant revenue could be lost in
future years. This is due to organised criminals exploiting the
current manual-based system. This new online process will stop
them in their tracks and put an end to opportunities for this
fraudulent activity. This will deliver an additional £125m in the
first full year.”
Richard Bysouth, HMRC, said:
“From 2013 the new online system will mean no one will be able to
get their vehicles registered with the DVLA unless they have
notified the vehicle online and the VAT has been paid or HMRC is
confident that the VAT will be paid.
“We are seeking views from people who bring road vehicles into
the UK either in a business capacity or as private individuals.”
Budget 2011 announced a joint HMRC/DVLA initiative to replace
existing manual procedures with a mandatory online notification
requirement for road vehicles entering the UK for permanent use on
UK roads. This will enable real-time verification of the VAT
status of notified vehicles, with collection of the VAT up-front
in some cases. Consequently, the DVLA will be provided with timely
information, enabling it to refuse vehicle registration if the VAT
is not assessed as secure by HMRC, thereby protecting the tax.
This is a joint HMRC/DVLA initiative aimed at countering high
levels of VAT fraud in this area and to simplifying the system for
all users.
This consultation is designed to inform the development of the
new system.
The document can be accessed at http://www.hmrc.gov.uk/consultations.
Notes for editors
1. The consultation period for this document runs from 31 May
2011 to 31 August 2011.
2. Responses and enquiries concerning this consultation should be
directed to:
Richard Bysouth
HMRC
VAT Projects
Team
3C/10
100 Parliament Street
London SW1A 2BQ
Telephone 0207 147 0328
Email: richard.bysouth@hmrc.gsi.gov.uk.
3. Follow HMRC on Twitter @HMRCgovuk.
NAT 50/11
Issued by HM Revenue & Customs Press Office
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