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Back Market Accuses Cdiscount of VAT Fraud

Back Market accuses Cdiscount of allowing third-party sellers to engage in VAT fraud by offering suspiciously low prices on refurbished products, leading to unfair competition.

Read original article in French

French

France

FranceCompetitionRetailFraudE-CommerceTax

Back MarketCdiscountDgfip (Direction Générale Des Finances Publiques)Afp

How are the sellers allegedly committing fraud?: The alleged fraudulent activity involves sellers claiming to be based in the EU but not collecting VAT, thus undercutting competitors like Back Market.
What is Cdiscount's response to the accusations?: Cdiscount maintains that its VAT policy complies with regulations, and that they take action against suspected fraud by requesting proof of tax compliance and withholding VAT if necessary.
Can you give an example cited by Back Market in their letter?: Back Market's letter to the French tax authority highlights specific examples of suspiciously priced products, including an iPhone 12 sold at a significantly lower price than on its platform.
What is the main accusation made by Back Market against Cdiscount?: Back Market, a reseller platform, accuses Cdiscount of insufficient vendor control, leading to unfairly low prices.
What is the alleged fraudulent activity that Back Market claims is taking place on Cdiscount's platform?: Back Market claims that Cdiscount's third-party sellers are engaging in VAT fraud by offering suspiciously low prices on refurbished smartphones.

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