Lax TSO rules could increase power and gas VAT fraud

The potential for Value Added Tax (VAT) fraud in the European power and gas markets could be heightened by lax rules for Transmission System Operators (TSOs) registration, say market analysts.

VAT fraud – or carousel fraud as it is known – involves the importing of VAT-free goods from the European continent into the UK, then selling these on without a VAT charge. The seller then disappears without paying the said VAT to the UK taxation authorities, HM Revenue & Customs.

Recent reports have