EU proposes further VAT fraud measures
- Nov 30, 2017 | Richard Asquith
The European Commission yesterday proposed a range of new measures aimed at combating the estimated €50billion in VAT fraud.
The measures are a follow-up to the recent proposals to the wholesale reform of the EU VAT regime, including the Single EU VAT Area.
Anti-VAT fraud propositions
- An online system for member states to share data on potential fraudulent activities on cross-border trade. Live data would enable tax authorities to analyise unusual trade and act quickly on any potential frauds. Joint audits by member states’ tax authorities are also proposed, with a focus on e-commerce fraud
- Establishing new channels of communication with other law enforcement agencies, including OLAF, Europol and the new European Public Prosecutor Office. This would enable tax authorities to cross-reference cross-border activities to criminal records
- Sharing VAT and Customs information on imports into the EU, which are particular susceptible to VAT fraud. There would be better exchange of information on imports into one country which are only cleared into free circulation in another member state of final destination.
- Information exchange on trading second hand cars across EU borders to prevent VAT fraud