Models of Cross-Border VAT Fraud

Silvia Fedeli and Francesco Forte

No 123, Working Papers from Sapienza University of Rome, Department of Public Economics

Abstract: The EU market's free circulation principle severs the VAT chain at the EU States borders, thus, enticing VAT frauds. The increased "transit traffic" from outside EU with final destination in EU also contribute to VAT fraud. To examine this issue, we model some different collusive characters of these frauds, on which basis we explore their effects on the international trade and the domestic market.

Keywords: European Union Value Added Tax; income tax and VAT evasion; VAT carousel; Nash equilibrium fraud-chain (search for similar items in EconPapers)
JEL-codes: H24 H26 (search for similar items in EconPapers)
View list of references

Downloads: (external link)
http://dep.eco.uniroma1.it/docs/working_papers/WP123.pdf 2009 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:sap:wpaper:123

Access Statistics for this paper

More papers in Working Papers from Sapienza University of Rome, Department of Public Economics
Contact information at EDIRC.
Series data maintained by Luisa Giuriato ().