European Public Prosecutor's Office (EPPO)’s Post

Benefits of Reverse Charge 1.Simplified Compliance: Easier for businesses to handle cross-border transactions without dealing with foreign VAT registration. 2. Fraud Prevention: Helps prevent VAT fraud by shifting the VAT accounting responsibility to the buyer.

Another VAT-fraud suspect arrested 👊 ; "The suspect was wanted in connection with a criminal organisation, active in the international trade of consumer electronics (mainly AirPods). They are suspected of evading tax by means of a VAT carousel fraud – a complex criminal scheme that takes advantage of EU rules on cross-border transactions between its Member States, as these are exempt from value-added tax – with estimated losses to the EU and national budgets of at least €85 million. According to the investigation, the suspects established companies in Germany and other EU Member States, as well as in non-EU countries, in order to trade the goods through a fraudulent chain of missing traders – who would vanish without fulfilling their tax obligations. Other companies in the fraudulent chain would subsequently claim VAT reimbursements from the national tax authorities." Source EPPO Identified by www.112Wwft.nl -- To uncover a crime is to prevent another! 🕵♀️ VAT carousel fraud, or Missing Trader Intra-Community (MTIC) fraud, is the most profitable crime in the EU according to EPPO. But how does it work? Watch this shortmovie by EPPO to get a better understanding; https://lnkd.in/eVrD8-MN 👈 You can find more daily news on tackling VAT-frauds in the news section of my website ; https://lnkd.in/edP7Mw-U 👈 #fraud #kyc #cdd #fec

📌EU Takes Action on 'Missing Trader' Fraud European prosecutors have intensified their efforts to combat tax fraud, recently arresting participants in a major scheme known as "missing trader fraud." Enhanced controls and detection of such schemes will be ongoing to prevent significant financial losses for EU countries and maintain economic stability in the region. ❕The main stages of this scheme are as follows: ▪️ Fictitious companies are created, officially registered, and entitled to pay VAT. ▪️ These companies become involved in the chain of trade, usually dealing with high-value goods such as electronics. ▪️ These companies engage in numerous fictitious transactions. They buy goods with VAT but sell them without VAT to other companies in the chain. ▪️ At a certain point, one of the fictitious companies that was supposed to pay VAT to the state simply disappears, leaving the state without the VAT revenue. ▪️Meanwhile, other companies in the chain that operate legally demand a VAT refund from the state, citing VAT payments to their suppliers (which, as it turns out, were fictitious companies). Thus, the state budget loses money twice: first, because the fraudulent company does not pay VAT, and second, due to the illegal VAT refunds to legitimate companies.

VAT fraud can lead to severe financial penalties, legal repercussions, and reputational damage. Authorities (such as HMRC) have stringent regulations and oversight mechanisms in place to prevent and penalise VAT fraud. If your business is found to be involved in or negligent towards VAT fraud, it could face hefty fines and even criminal charges, which can be financially crippling and ruin your credibility. Always check to make sure that you're compliant with VAT regulations! #BusinessTip #VAT #Fraud 

Scam alert | HM Revenue & Customs is urging Self Assessment customers to be on the lookout for scam texts, emails, and phone calls from fraudsters. Find out what to look for and what steps to take to ensure you are safe >> https://lnkd.in/d89vdD33 #selfassessment #taxreturn

As we await the government guidance on the failure to prevent fraud offence, this is a great blog from my colleagues Ethan Salathiel, Michael Pollitt and Benjamin Harding-Laleman on what we can learn from previous legislation of a similar nature such as tax evasion and bribery as well as some practical steps that can be taken now. https://lnkd.in/egg7A8_X

Read this EU Missing Trader fraud report if you are: 1. Budding criminal needing detailed diagrams on how to commit this most complex of crimes; or 2. VAT exec needing to follow reforms Of course if you are 1., please don’t mention my name at your trial

Caution – Fraud hits VAT repayments ❗ Taxpayers should be aware of potential fraudulent behaviour behind the scenes of their VAT repayment account with HMRC. There have been reported cases, where individuals and entities bank details used for VAT repayments have been modified with third party details, due to false information being submitted on the taxpayers' behalf to HMRC via Form VAT484. HMRC have put in motion removing the pdf Form VAT484 to prevent this issue from reoccurring. In the meantime, BDO recommends that you double check any notifications from HMRC and your details held on their system. BDO is here to help if you require assistance in fraud prevention, contact us with any queries: https://ow.ly/Otwg50REyQh Lorraine Nelson Rebekah Townsend #SupportingNIBusinesses #TaxFraud

A carousel is fun for kids, but the government is not that happy about VAT carousel fraud. 😬 Dishonest companies set up carousel schemes to commit fraud based on the way VAT is collected and refunded. In our latest blog post, we tell you exactly how these schemes work and how e-invoicing is helping to fight this type of fraud. ⚔

EU VAT and MTIC fraud | A report prepared for the Commission was published setting out to take a first step towards the estimation of VAT revenue forgone due to a specific type of VAT fraud, known as Missing Trader Intra-Community (MTIC) fraud. The objective of this "MTIC gap study" is to determine the best-suited methodological and operational framework that could be employed for recurrent yearly estimation of VAT revenue foregone due to MTIC fraud. In the study various types of MTIC are discussed, an estimation of the scale of fraud conducted up to date, the measures (planned to be) implemented by Member States and the EU to tackle MTIC fraud, such as domestic reverse charge, e-invoicing, split payments, SAF-T reporting, Eurofisc, VIES and the VAT in the Digital Age (ViDA) proposals and a recommendation for the Commission to continue the development of the methodology to estimate forgone VAT revenue due to MTIC fraud in the EU and EU Member States under Phase II of this study. In particular, it is recommended that the methodological scenario based on Intrastat data and classification data mining techniques be used for this purpose. It is also proposed to further explore the availability of data from VAT returns and VIES. The full report can be found here: https://lnkd.in/e4yZ2rSW #VAT #vatgap #fraud #missingtrader #mtic #vida #saft #einvoicing