VAT Fraud: MTIC & MTEC – The Tradable Services Problem

Tradable services – VoIP termination services, mobile minutes, software as a service (SaaS), or almost any service bought or sold in the “cloud”[1] – are a distinct class of taxable supplies. These service-based supplies both resemble and differ fundamentally from goods. They also differ from services that are consumed-on-purchase (consumed services). Restaurant meals, auto repairs, or house painting services are examples of consumed services. These services are rarely re-sold –…