Tax fraud and evasion in respect of VAT

Tax fraud and evasion in respect of VAT most often comes from fraud and evasion in cross-border transactions,  fraud and evasion related to invoicing and accounting or from avoiding of VAT registration and payment.

  • Carousel frauds
  • Simulated intra-community delivery of goods
  • Tax fraud at import of goods from third countries that should be subsequently delivered to another EU country
  • Fictional export of goods and subsequent application of high excessive refund from State Budget
  • Fraud at trading with used goods
  • Illegal import of goods and its subsequent inland resale without applying VAT
  • Not reporting VAT in case of services accepted from foreign providers by a person who is not identified for VAT purposes but has the obligation to pay tax on accepted services
  • Modifications in accounting
  • Not issuing invoices for sold goods or provided services or failure to use ECR – „black sale“
  • Tax payer applies VAT refund twice for the same invoice in two different tax periods
  • Expenditures and VAT refund applied for „purchased receipts“ from an ECR
  • Artificial downsizing of turnover to avoid the obligation of legal registration of a taxable person as a VAT payer