A growing number of VAT-fraud cases in e-commerce
The Belgian Customs Authority has recently reported a growing number of fraud cases with importing goods from countries like China concerning import duties and VAT.
It is mostly e-commerce companies that import goods like electronics, and who declare a value for these goods that is far lower than the actual value. These fraudsters use this method to evade import duties based on the customs value of the goods. Through this same method, they also pay less VAT (Value Added Tax) than they should.
According to Belgian news outlet De Tijd these companies are active on various e-commerce platforms.
A similar method of fraud is one where companies use the possibility to shift VAT to a company in another country within the EU. The company importing the goods declares to the Customs Authority that the goods are sold to a company in another EU country. In reality, the goods are sold in the country where they were imported, with VAT evasion as a result.
Customs Support is always diligent when it comes to determining the customs value of goods. Our highly trained and experienced specialists know how to determine the actual value, based on the legal methods. We prevent even the appearance of fraud, by working this way. When we suspect goods are imported and will be undervalued, we do not work with or for these companies.
Customs Support: Empowering Global Trade
Do you have questions about importing goods from countries like China, about determining customs value, import duties, or VAT? Contact one of our specialists. They are happy to help.