China VAT lotto takes on rampant fraud
- Apr 11, 2018 | Richard Asquith
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.