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Reform of the EU VAT System and Fight Against Fraud

Summary

The report calls for a definitive and modernized EU VAT system to combat massive revenue losses from fraud, particularly carousel fraud, by moving toward a country-of-destination principle.
10 24.11.2016
Other
economy
taxation
government
criminal law
social policy
european union
administrative reform
business and competition
public finance and budget policy
information technology and data processing

Key points

  • The current EU VAT system is outdated and relies on provisional arrangements from 1993 that no longer fit the digital economy.
  • VAT fraud, particularly carousel fraud, causes massive revenue losses for Member States and is often driven by organized crime.
  • The estimated annual loss due to the VAT gap in the European Union is approximately 170 billion euros.
  • A transition to a country-of-destination principle is recommended to simplify cross-border trade and reduce fraud.
Documents (PDFs)
REPORT on towards a definitive VAT system and fighting VAT fraud Towards a definitive VAT system and fighting VAT fraud
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