One of the many wonders of MTIC fraud, not only does it remove revenue for vital services and cost billions, it also skews trade figures, which will impact on accurate and effective planning.
A €307bn anomalyIt should be a logical impossibility for the world to run a trade surplus with itself. Yet for the past 15 years, it has done so. Since 2004, the reported value of exports has been greater than the reported value of imports, and this global “self-surplus” has grown steadily, to reach about $422bn, or 0.5 per cent of world gross domestic product. Researchers at the Kiel Institute for the World Economy and the Ifo Institute in Munich say the problem is largely “made in the EU” — and that the most plausible explanation is VAT fraud on a grand scale, facilitated by the creation of the EU’s single market.