Digital Workshop on the Use of Alternative Payment Systems in Cross-Border VAT Fraud Schemes

The two-day online event focused on strengthening tax administrations' capacity to detect, analyse, and disrupt cross-border VAT fraud schemes involving APS. Building on the findings of the IOTA Report on the Use of Alternative Payment Systems in Cross-Border VAT Fraud Schemes, the Workshop combined plenary presentations, real-life case studies, technical demonstrations, and interactive group discussions to translate analytical insights into practical operational approaches.

The Workshop opened with welcoming remarks from IOTA International Taxation Experts, So Young Kim and Massimo Morarelli, who introduced the event's objectives and emphasised the importance of enhanced cooperation and data-driven approaches to address increasingly sophisticated VAT fraud schemes. In the introductory plenary session, So Young Kim presented the main findings and strategic conclusions of the IOTA APS Report, outlining key fraud typologies, operational challenges, and recommended next steps for tax administrations.

The first day focused on identifying common fraud patterns and analysing practical case studies from different jurisdictions. The following expert presentations covered this subject:

• EPPO: “EPPO case of EMI and APP used in e-commerce VAT fraud” presented by João Araujo-Marques;
• Germany:  “German case of peer-to-peer payment apps used in e-commerce VAT fraud” presented by Andreas Hofius;
• Belgium: “Belgian Hawala case” co-presented by Pieter Vercruysse & Pascal Beaujeant;
• United Kingdom:  “UK case of EMIs and crypto-assets used in cross-border supply chain fraud” presented by William Howard

Following the presentations, participants engaged in facilitated group discussions where they analysed case examples, exchanged national experiences, and explored red flags, analytical methods, and data sources used to detect suspicious payment activity.

The second day of the workshop focused on national approaches, analytical tools, and operational practices for tackling APS misuse.

During the session on country practices, two presentations were delivered by:

• Finland: “Finland; Good Practice” presented by Raita Melasniemi;
• United Kingdom: “UK Good Practice” presented by William Howard;

A technical highlight of the workshop was a live demonstration of a KNIME workflow for analysing large payment datasets. Delivered by Pieter Vercruysse and Pascal Beaujeant from Belgium, the demonstration showed how tax administrations can use visual workflows and advanced analytics to detect APS-related fraud indicators in large volumes of payment data.

The final session focused on translating analytical findings into operational guidance. Presentations included:

• United Kingdom: "Risk analysis and use of data sources" presented by William Howard;
• Slovakia: “Data analytics” presented by Ing. Róbert Píš;
• EUROPOL: “Cooperation” presented by Bruno Freitas

Participants also shared the outcomes of their group discussions, highlighting practical insights and recommendations on how to convert analytical results into effective operational workflows within their administrations.

Throughout the Workshop, participants had the opportunity to ask questions during interactive Q&A sessions and to explore concrete tools and approaches to enhance situational awareness, cross-border cooperation, and data-driven detection of VAT fraud involving APS. All materials and presentations are now accessible online via the event's webpage, while the video recording from the Workshop will be made available soon on the same platform. The event was facilitated by IOTA International Taxation Experts, So Young Kim and Massimo Morarelli from the IOTA Secretariat.