EU: Report on administrative cooperation

European Commission report (24 pages, PDF) on the use of administrative cooperation arrangements in the fight against VAT fraud. The report includes the following statement about the overall scale of fraud:

Though the detection rate of fraud is uncertain and the exact amount of money involved difficult to quantify, the amounts are undoubtedly considerable. Some Member States have estimated such losses as up to 10 % of net VAT receipts. VAT fraud has therefore become a real worry in many Member States. In addition to the loss of national revenue, this fraud jeopardises legitimate trade in certain economic sectors and distorts competition to the benefit of dishonest traders.

There is no specific quantification of the impact of MTIC fraud.

For further information or advice please contact Franck Latrémolière.

Filed under Tax fraud, VAT.

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