Higher VAT raises fear of cross-border fraud

Increases in value added tax came into force across Europe in January 2011 as governments turned to indirect tax to shore up public finances, sparking concerns about the region’s susceptibility to cross-border fraud that had already cost tens of billions of euros.

It highlights the growing importance of VAT in Europe, which accounts for 21.4% of the national tax revenues of EU member states, a rise of 12% since 1995. Reliance on VAT has increased given the slump in direct and property-related taxes since the recession.

ESO: Background information: VAT fraud: The European Commission presents possible far-reaching measures on VAT to better combat fraud http://www.europeansources.info/record/vat-fraud-the-european-commission-presents-possible-far-reaching-measures-on-vat-to-better-combat-fraud/

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