Value Added Tax (VAT) Carousel Fraud in the European Union

Loukia Sergiou ()
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Loukia Sergiou: Department of Business Administration, P.A. College

The Journal of Accounting and Management, 2012, issue 2, 9-21

Abstract: Objectives: The central aim of this paper is to determine as accurately as possible the nature, extent and cost of vat carousel fraud to the public and private sectors within the European community. Prior Work: The European Union (EU) Institutions and Member states have put forward several measures to tackle this problem, although some of these have placed a disproportionate burden on business. A lot of countries have imposed distinct measures to combat VAT carousel fraud and important lessons have been emerged about their efficiency and compliance. Approach: The methodology takes a comprehensive review of prior research evaluating real evidence of VAT carousel fraud and analysing attempts by the European Union to tackle effectively VAT carousel fraud. Results: The study concludes that the possible solutions are in the field of closer cooperation and understanding among related parties as well as the application of combined restrictive measures. Implications: The study has implications to the society, managers and policy makers. The results will aid national authorities to implement and share best practice to combat VAT carousel fraud with other national governments. Value: Confronted with the drastic increase of VAT carousel fraud, the European Commission identified the urgent need of a coherent strategy to combat it. Yet, neither the literature nor the practices of tax and law enforcement have addressed the threat adequately. This study research gives approaching solutions to delineate essential procedures and principles to embark upon VAT carousel fraud.

Keywords: VAT fraud; MITC fraud; VAT carousel fraud; European Union (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:dug:jaccma:y:2012:i:2:p:9-21

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