Volume 44 (2016) / Issue 4
In Europe, the fight against VAT fraud has attracted a lot of attention since the introduction of the current VAT system. The reason for this is simple: VAT fraud leads to significant distortion of the internal market, creates unfair competition and leads to missing tax revenues in the Member States. The latter can also lead to ‘skewness’ in the contribution of Member States to the EU budget. The European Commission (EC) has presented in the last decade numerous measures to combat VAT fraud. An analysis of these measures shows that Member States seem to address this ‘European’ problem mainly on a national level. The consequence hereof is that problems are not resolved at a European level and fraudsters have a ‘free play’, despite the flood of measures.
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