EU raises the alarm: Stop VAT fraud in imports!

EU raises the alarm: Stop VAT fraud in imports!

The European Union faces a serious challenge in the fight against VAT fraud in imports. The latest report by the European Court of Auditors emphasizes that the internal market is insufficiently protected against this form of abuse. According to oe24 The risk from tab controls in the Member States is significant. These weaknesses lead to high financial failures that distort the competition in the internal market.

The situation is alarming: Significant failures in VAT have been found in samples that were carried out in several EU countries. The goods introduced are subject to VAT when entering the EU customs union, whereby the tax height is determined based on the customs applications. However, the current controls urgently need to be reformed to ensure effective protection against fraud.

weaknesses of the control mechanisms

The report of the Auditors' report, whose members are sitting in Luxembourg, warns in particular of serious defects in the controls of the Member States. NAU explains that the necessary data between financial and customs offices of the EU countries are often not exchanged, which the monitoring and abuse Customs procedure is severely restricted.

The examiners have also found loopholes in the legal provisions for simplified EU import customs procedures, which further increases the risk of abuse. While under certain conditions there is an exemption from VAT for goods that are intended for other EU countries or for online trading, the existing measures to avoid fraud remain inadequate.

recommendations for changes

François-Roger Cazala, a member of the European Court of Auditors, emphasizes the need to introduce standardized rules for cooperation and data. ad-hoc-news not to be sufficient to face the challenges of added value. The Council is to find a balance between trade releases and the protection of the EU's financial interests.