What is LVCR Abuse?

LVCR is a legitimate EU import VAT relief but ‘circular shipping’ and ‘order splitting’ are practices that are employed to abuse LVCR and avoid VAT to gain a trading advantage over other EU traders. EU law obligates EU member states to apply LVCR in a way that prevents the abuse of LVCR and VAT avoidance. LVCR was not intended to be used by retailers to mail order goods VAT free in the EU. Using it for this purpose is an abuse.