Vat Fraud??

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Villagefood

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Hi guys. I recently was online shopping and at the checkout i was presented with the option to enter a vat number so that the vat would be deducted at the checkout. I never thought it worked like that but i decided to enter a vat number (which belongs to my friends company) and it saved me a significant amount of money.

However, its only in hindsight that i have thought about it more and have since read that this is considered Fraud. How can i rectify this?? The item ordered has already been shipped.

I paid using my own credit card but because i provided my friends company vat number , iam now worried about the implications?

Will revenue know this transaction was illegal ??

The item was ordered from the uk and using an irish vat number if that helps
 
1 Tell your friend
2 Tell Revenue
3 Pay up, plus any fines penalties levied, and look pleasant

and somewhere between 1 and 3 take those ludicrous question marks off the thread title. You know it's fraud, no question about it.
 
mathepac said:
1 Tell your friend
2 Tell Revenue
3 Pay up, plus any fines penalties levied, and look pleasant
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How will this come to revenues attention?? Right now i do not have the money to pay (which is why using the vat number to save money was so tempting) I was unaware how serious it was or what the consequences are.

How would it come to revenues attention that someone used someone elses vat number for a purchase?
 
How would it come to revenues attention that someone used someone elses vat number for a purchase?

From you posting on a public bulletin board??
 
It's clear fraud.

Your friend is at a much bigger risk than you. I think that Revenue gets a list of such transactions. And if they see a business buying something more appropriate for a home, it is one of the factors which triggers a Revenue audit. Or they might just send him an enquiry about the item.

You should contact the retailer in the UK, and tell them it was an error on your part and they will fix it when you send them the money.


Brendan
 
Iam posting here for advice so i can hopefully rectify this. Iam mortified. I didnt think at all. I just couldn't believe it entering the number could result in me saving money so easily . It was as easy as entering a discount code. Lesson learnt.
 
I agree with Brendan. The consequences for his friend are potentially very serious and disruptive with VAT audits a possibility.
 
Villagefood said:
How will this come to revenues attention?? Right now i do not have the money to pay (which is why using the vat number to save money was so tempting) I was unaware how serious it was or what the consequences are.

How would it come to revenues attention that someone used someone elses vat number for a purchase?
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You would be surprised what Revenue can ascertain and find out.
 
Iam not suggesting this makes it ok but elsewhere i have read that this is common especially with business owners purchasing stuff for personal use and illegally using their vat number but that they almost never get punished ??

I cant cancel my order as it has already been shipped but i have reached out to the vendor to see if theres a solution
 
Villagefood said:
Iam posting here for advice so i can hopefully rectify this. Iam mortified. I didnt think at all. I just couldn't believe it entering the number could result in me saving money so easily . It was as easy as entering a discount code. Lesson learnt.
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You've already had it expalined to you in the Accounting Forum....
 
Villagefood said:
Iam not suggesting this makes it ok but elsewhere i have read that this is common especially with business owners purchasing stuff for personal use and illegally using their vat number but that they almost never get punished ??
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While this may be true, you have intervened as a 3rd party in the process which could result in the transaction sticking out like a sore thumb.
 
Villagefood said:
Iam not suggesting this makes it ok but elsewhere i have read that this is common especially with business owners purchasing stuff for personal use and illegally using their vat number but that they almost never get punished ??

I cant cancel my order as it has already been shipped but i have reached out to the vendor to see if theres a solution
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You asked questions and received replies. If I were you I'd act in the proper ways suggested above.

I remember doing my Leaving Cert and the Exam Superintendent gave us an extra 20 mins beyond the time allowed. We accepted gratefully and let the matter rest there.
 
If the goods are coming into Ireland from a non-EU state (which the UK will be quite soon), they may come to the attention of Customs who will check the position regarding VAT on the goods once they reach the port of entry.

Revenue conducted a successful revenue raising exercise in the past couple of years on such goods coming in to the country and in fact raised millions in VAT on such imports. Up until then, people ordering high value goods from outside the EU were avoiding VAT. No more.

This is one way Revenue might have its attention drawn to the goods and the VAT position.

Im not familiar with the ins and outs of the process but if they establish that VAT wasn’t properly paid, they can quarantine the goods until the VAT is paid.
 
Jayom75 said:
If the goods are coming into Ireland from a non-EU state (which the the UK will be quite soon), they may come to the attention of Revenue & Customs who will check the position regarding VAT on the goods once they reach the port of entry.

Revenue conducted a successful revenue raising exercise in the past couple of years on such goods coming in to the country and in fact raised millions in VAT on such imports. Up until then, people ordering high value goods from outside the EU were avoiding VAT. No more.

This is one way Revenue might have its attention drawn to the goods and the VAT position.

Im not familiar with the ins and outs of the process but if they establish that VAT wasn’t properly paid, they can quarantine the goods until the VAT is paid.
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Iam happy to pay the balance owed. In saying that, The product i ordered is a product that the shops (whos vat number i used) also sells similar products. Could i get the shop to bill me the vat??
 
Gordon Gekko said:
Return the item, claim the refund, and then buy it again with VAT
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Fine if it comes to that but couldnt my workplace just sell me the tv and charge me vat?? It would be as if they ordered it not me and then they sold it legally. Thats surely a viable solution?
 
Gordon Gekko said:
That introducing yet another innocent bystander into your mess.

Cancel and reboot.

Simple.
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How?? The product i ordered is a product my workplace sells. We just do not sell this particular model. I don't see anything wrong IF my workplace was to sell it to me. Its no different to if i came to the store asking for this product, and they ordered it for me!!
 
I tend to try and avoid this kind of buffoonery, but I’m bored, so here goes...

You bought an item fraudulently using your mate’s VAT number. Now you want to pretend your employer bought it and then buy it off them.

There are now four parties to this dodgy transaction, three of whom are innocent. Why not just reverse it completely.
 
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