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Yet another challenge thrown up by the relentless growth of e-commerce volumes is the non-EU shippers sending small packages to Europe’s online shoppers, deliberately under-declaring their value to avoid VAT charges. The European Commission estimates it is losing around €5bn a year in lost tax revenue from 150m packages a year where value is misdeclared – in the UK, for example, goods of less than £15 are not subject to VAT. The EC is expected to announce new measures to crack down on the scam later this week.
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Alex Lennane
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