What technologies are available to solve carousel fraud?
In the modern technology-led financial world, there are well-established technologies available to drastically reduce the opportunity for VAT fraud; indeed these technologies are already widespread in the banking and settlement industries, where they operate at capacities and speeds significantly in excess of what would be required for the RTvat proposal. Real time VAT collection will eliminate carousel fraud completely because the tax is removed automatically at settlement through the seller’s bank account, so the merchant never has access to the VAT component of the sale price. Fraud scoring is now an established feature of the credit card business, with specialist software available to create neural networks to monitor patterns of potentially fraudulent activity. The software automatically tracks whether the business activity is consistent with the VAT collected, merchant’s turnover, usual spending pattern, credits claimed, and whether suppliers are of the kind normally expected for
