If you've no account register here first time
User Name :
User Email :
Password :

Login Now

EU’s Reverse VAT on Carbon Offsets Intended to Reduce Fraud

carbonic emissions2To cut down on fraud in the carbon trading market, the European Union is proposing a reverse payment scheme for value added taxes (VAT) on carbon trading, reports Carbon Offsets Daily.

The EU directive would have a company send paperwork to the Treasury paying the VAT and at the same time requesting a refund. Effectively, the company would pay nothing at the time.

The directive, which will be phased in over the next couple months, will not be the only method for companies to pay for their carbon emissions, the article notes.

For instance, the UK has implemented a zero VAT rate on carbon trading to minimize fraud.

The EU’s new scheme will last until December of 2014.

Earlier this year, the UK uncovered “carousel fraud,” which involves carbon offsets that are imported into Britain without paying value added taxes (VAT) and then sold to companies, each of which is liable to pay the standard rate of VAT on the purchase, which as of last year was 17.5 percent.

Choosing the Correct Emission Control Technology
Sponsored By: Anguil Environmental Systems

Financing Environmental Resiliency and a Low-Carbon Future with Green Bonds
Sponsored By: NSF International

The Corporate Sustainability Professional's Guide to Better Data Management
Sponsored By: Urjanet

Is Energy-From-Waste Worse Than Coal?
Sponsored By: Covanta Environmental Solutions


Leave a Comment