Europe ‘must reform VAT’ to beat fraud

Europe needs 'fundamental change' to its VAT system to help beat fraud costing up to €250bn a year, said Laszlo Kovacs, the European Union's Taxation Commissioner as EU Finance Ministers discussed ways to cut the huge fraud bill in Berlin 1 April 2007 - but they were divided on the best way forward. Ministers debated the options offered by the reverse-charge model, under which tax debt on transactions between companies is generally shifted from the company providing the service to the recipient company.

Germany: EU Presidency: Calendar: Informal Meeting of Ministers for Economics and Finance, Berlin, 20-21 April 2007 http://www.eu2007.de/en/Meetings_Calendar/Dates/April/0420-WF.html

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