So how does this fraud work then?

[off_again]

http://news.bbc.co.uk/2/hi/business/4138894.stm

Ok, tried and tried and dont get it.... or am I missing something here? Anyone understand this one?

Obviously they wont give the full details of how it works, but I am at a loss to understand how it works. There must be easier ways..... ?

[hobbit123]

As I understand it, if the goods are bought in the UK, but are exported then you can claim back the VAT as the destination country will have to claim their version of taxes. So, you export and claim the VAT back, then sneak them back in and sell at full market price. You make your normal profit + 17.5% and hope you don't get found out. Mr. Branson started Virgin on the back of it, and claims (kind of) lack of deliberate forethought of the practice in his book.