China VAT lotto takes on rampant fraud

China’s Shanghai trials with a weekly anti-tax fraud cash prize draw for VAT invoices has been declared a success.

Since the start of 2018, Shoppers can upload barcodes on their VAT invoices to a phone app for a potential immediate €12.50 (equivalent)  prize. Their invoices are also entered into a weekly draw with a top prize of €50,000 (equivalent).

The Shanghai Office of State Administration of Taxation is trailing the scheme in key sectors, prone to under declared VAT sales, including: catering; accommodation; entertainment; and home improvements. Over 60,000 businesses in Shanghai are involved in the draw.

A number of countries in Europe have been running similar schemes, including Portugal and Greece.

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