{"id":6868,"date":"2020-12-08T11:20:04","date_gmt":"2020-12-08T11:20:04","guid":{"rendered":"https:\/\/www.jaeger.nl\/?post_type=expertise&p=6868"},"modified":"2024-10-10T09:18:08","modified_gmt":"2024-10-10T09:18:08","slug":"vat-carousel-fraud","status":"publish","type":"expertise","link":"https:\/\/www.jaeger.nl\/en\/services\/vat-carousel-fraud\/","title":{"rendered":"VAT carousel fraud"},"content":{"rendered":"\n
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A common form of fraud is the \u2018VAT carousel<\/strong>\u2019. According to a\u00a0report<\/a>\u00a0from the European Court of Auditors, the member states of the European Union annually lose 40 to 60 billion euros to this form of internationally organized fraud.<\/p>\n\n\n\n

How does VAT carousel fraud work?<\/h2>\n\n\n\n

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Carousel fraud takes many forms. In the most commonly detected variant of carousel fraud, a supplier based in member state 1 (the \u2018straw man\u2019 company) supplies (VAT exempt) goods to a second company \u2013 the \u2018buffer\u2019 \u2013 based in member state 2. This \u2018buffer\u2019 then misuses the consignment of VAT-exempt goods and resells the same products on the national market of member state 2 at highly competitive prices. The \u2018buffer\u2019 can do this because he charges VAT to the customer but does not pay it to the tax authorities; he thereby increases his profit margin. The \u2018buffer\u2019 subsequently disappears without a trace, making it impossible to collect the tax in the state where the goods or services are purchased. A schematic diagram of VAT carousel fraud is shown adjacently.<\/p>\n\n\n\n

Was aware or should have been aware of fraud<\/h2>\n\n\n\n

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Because VAT carousel fraud is difficult to combat and extremely lucrative, the government long ago stopped targeting only the persons organizing the fraud. Bona fide businesses which have bought goods from a \u2018buffer\u2019 are also dealt with severely. If you were aware or\u00a0should have been aware\u00a0that the business you were dealing with was part of a fraudulent setup, then you are also part of the fraud, according to the tax authorities’ reasoning. As as consequence, the tax authorities demand the return of the VAT that you deducted for these goods and, in many cases, imposes a fine because you \u2018should have known better\u2019.<\/p>\n\n\n\n

Expert assistance is essential with VAT carousel fraud<\/h2>\n\n\n\n

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If you are accused of participating in VAT carousel fraud<\/em> and wish to defend yourself, expert assistance from a tax lawyer is essential. Jaeger\u2019s lawyers have years of experience in refuting suspicions of fraud. Problems with directors’ liability<\/a>? We can help and assist you there too.<\/p>\n\n\n\n

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Problems with VAT carousel fraud?<\/h2>\n\t \tWe fight for your rights<\/span>\n\t\t\t \n\t\t\t\tMake your appointment<\/span><\/a>\t\t\t \t<\/div>\n <\/div>\n<\/div>\n\n\n\n