Vat fraud costs EU €100bn

VAT fraud is costing taxpayers €100 billion a year according to OLAF, the EU’s independent fraud investigations body.

Known as carousel fraud, it is one of the biggest scams operating in Europe. It also distorts import and exports figures between Britain and Ireland, OLAF believes.

The Revenue Commissioners estimate fictional sales of computer parts and mobile phones between Ireland and Britain amounted to almost €5 billion last year, costing Britain around €800 million.