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EU consults on VAT fraud

  • Mar 24, 2018 | Richard Asquith

EU consults on VAT fraud

The European Commission has launched a consultation on the free exchange of tax data between member states to help fight VAT fraud in the area of e-commerce. It seeks to understand from the online marketplaces, tax authorities and payment companies how best to detect and prevent undeclared transactions for VAT purposes.

3 potential solutions are envisaged by the EC, including:

  1. Authorities continue as they are, collecting variable levels of information
  2. The EC assists the tax authorities in collecting and processing data on a non-regulated basis
  3. The EU legal framework is updated to enable tax authorities to collect data from payment intermediaries (not possible at present) to identify non-VAT compliant merchants

The areas to be consulted include:

  • VAT fraud on B2C goods e-commerce
  • Do the tax authorities have sufficient legislative powers to combat VAT fraud?
  • To what extent would further tax harmonisation help prevent fraud?

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.