News NAO probes VAT avoidance claims iSToCk.Com / PETmAL HM Revenue and Customs (HMRC) has been criticised in a National Audit Office (NAO) report into concerns that online sellers based outside the EU are avoiding charging VAT. HMRC only recognised online VAT fraud as a problem in 2014, whereas CTSI and trader groups claim that it has been around since 2009. They say it has got worse in the past five years, during which time many sellers have moved to a fulfilment-house model, where goods are stored and delivered from a UK warehouse. VAT rules require that traders based outside the EU, selling goods online to customers in the UK, should charge VAT if their goods are inthe UK at the point of sale. HMRC estimates a loss of between 1bn and 1.5bn in tax revenue in 2015-16, a figure that the NAO describes as subject to a high level of uncertainty. The sum represents between eight per cent and 12per cent of the total VAT tax gap of 12.2bn for that year. According to the NAO, HMRC has been unable to assess how much of the loss was because of error or fraud. Amazon and eBay believe much of the problem is down to a lack of awareness, and are focusing on educating traders. New legal powers introduced by HMRC in September 2016 make online marketplaces potentially jointly liable for non-payment of VAT when they have been informed of an issue. The NAO found that there have been no prosecutions for online VAT fraud to date, but 279 investigations and 373 compliance interventions took place over the past year. HMRC has decided to focus its compliance efforts inland including on fulfilment houses rather than at the border. However, it is not certain how many fulfilment houses there are in the UK. The report, Investigation into overseas sellers failing to charge VAT on online sales, concluded: We recognise that HMRC must consider effort and efficiency in collecting VAT, but its enforcement approach to online trade appears likely to continue the existing unfair advantage as perceived by UK trader groups. Renewable Energy Consumer Code extended to ensure customer protection Two months after CTSI warned that the domestic battery-storage sector was ripe for mis-selling and vulnerable to rogue trading, the Renewable Energy Consumer Code (RECC) has included batterystorage systems, after complaints about mis-selling. The RECC which was set up by the Renewable Energy Association to help protect consumers now covers battery-storage systems and related products typically sold alongside solar panels. This is partly in response to a rise in complaints citing mis-selling; so far this year, RECC has received 13 complaints about battery storage and was getting roughly one per week during 2016. More than half of the complaints relate to companies making incorrect claims about the impact a battery-storage system would have on electricity bills, the batterys lifespan, and the government grants consumers will receive for storage. Other complaints include companies gaining entry to peoples homes under false pretences, the targeting of vulnerable consumers, and consumers feeling pressured into signing contracts. Similar fearswere cited in the Smart move? article featured in the March edition of TS Today. By extending the code to include battery storage and related products, RECC aims to ensure that only reputable installers approach consumers with offers of battery storage and related products. Itis thelargest CTSI-approved consumer code within the industry and RECC encourages all installers to sign up, to ensure consumer confidence and industry credibility. Virginia Graham, RECC chief executive, said: We think this is a major step forward for consumer protection. We know there is already mis-selling and confusion among consumers, and we are aiming to ensure that this is avoided. RECC is working with some major players in the industry including manufacturers, suppliers and distributors to assist them in ensuring their equipment is properly sold to consumers, thus maintaining the reputation of this growing industry. Dr Christian Jardine, technical director at solar energy equipment supplier Joju, said: Batteries are going to be a major energy technology in the coming years. With a downturn in the solar market, installers are turning their attention to batteries, often aggressively so. Its a recipe for mis-selling, unfortunately, so we welcome RECCs guidance wholeheartedly. Fake ticket website attracts thousands More than 1,500 people tried to buy tickets from a fake website set up by the City of London Police, Action Fraud, Get Safe Online and the Society of Ticket Agents and Retailers (STAR), to raise awareness of fraud. Surfed Arts was promoted on Facebook as a secondary ticketing provider for gigs by stars such as Adele and Ed Sheeran. Women aged over 65, and those who live in London, tried to buy the most tickets, while men and women aged 35-44 and those who live in Birmingham were the least inclined to click on the advert. In the past three years, more than 21,000 people have fallen victim to ticket fraud the majority of these via the secondary-ticket market. Those who clicked through to the Surfed Arts website were immediately told that they were not able to purchase tickets, and were then advised on how to protect themselves from fraudsters. Secondary-ticketing market briefing paper A Commons briefing paper about recent initiatives to regulate the secondary-ticketing market including important new measures contained in the Consumer Rights Act 2015 has been published. It also considers measures contained in the Digital Economy Bill, including a government amendment to prohibit the use of bots to harvest tickets for events in the UK. 1 2 Click numbers for more stories Zafira fires report says voluntary approach to recalls not enough Vauxhall has been accused of showing a reckless disregard for safety, and needlessly putting drivers and their families in danger, after a fire risk was found in its Model B Zafira. A report by MPs on the Transport Select Committee reveals that the car manufacturer was too slow to begin a full investigation into the fires, and too quick to attribute them to improper and unauthorised repair. The report also says Vauxhall was slow to notify the Driver and Vehicle Standards Agency (DVSA) about the fires, and that the DVSA should have taken action more quickly. The committee says more must be done to make sure the DVSA is able to take proportionate and effective enforcement action to ensure vehicle safety, because the poor behaviour from Vauxhall shows that the Department for Transport cannot rely on manufacturers doing the right thing voluntarily. Chair of the committee Louise Ellman said: [Vauxhall] was too slow to acknowledge drivers concerns, too slow to begin an investigation, too slow to address the causes and too slow to alert drivers of real safety concerns. All car manufacturers should take heed of the recommendations in this report. The current voluntary approach to recalls is not robust enough. The DVSA must be given enforcement powers to compel manufacturers to act should it need to do so. This will ensure that drivers can have full confidence in the recall system. The first suspected fire relating to the heating and ventilation system in a Zafira occurred in 2008, and first concerns were raised with Vauxhall in 2014. However, Vauxhall did not launch an investigation until August 2015. Some of the fires were serious enough to destroy vehicles and cause damage to the surrounding environment. Vauxhall sold more than 230,000 Model B Zafiras, with manual or no air conditioning, between 2005 and 2014. may set to be full of political promises Full-pelt political campaigning starts around the UK this month, ahead of the General Election, which will take place on Thursday 8 June. The Prime Ministers snap election announcement came as a surprise to many, with Theresa May claiming she took the decision to go to the country to strengthen her hand when it comes to the upcoming Brexit negotiations.