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