Tackling VAT Fraud: Best Practice

All EU and IOTA member tax administrations face the problem of fraudulent activities in the field of VAT. With fraudulent activities prevalent throughout the IOTA region and a significant “tax gap” which demands urgent attention, VAT fraud is seen as a major concern for member tax administrations.

Moreover, those countries that are part of the European Union face additional difficulties from the “Missing Trader” or “Carousel Frauds” realized inside the European Union. However, these kinds of frauds are continuously developing and the fraudsters are using more and more sophisticated VAT fraud schemes, often involving traders from the non-EU member states in order to make a scheme more complex and more difficult to monitor and control for tax administrations.

For administrations to maintain an effective response to combating VAT fraud it is necessary for them to be aware of the most recent methods and techniques adopted by criminals and taxpayers to evade and defraud the revenue. To assist them in this fight they must be aware of and adopt best practice towards meeting the new and varied challenges thrown at them.

The aim of this Case Study Workshop is to provide an opportunity for tax investigators and auditors to meet and to exchange knowledge of recent VAT schemes (national, international, and EU and non-EU area) and to share their views and opinions on possible ways of combating these frauds.