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How to stop VAT frauds on the fuel market: a usual price rule

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  • Pavel Semerad

    (Department of Accounting and Taxation, Faculty of Business and Economics, Mendel university in Brno)

Abstract

VAT fraud has now grown extensive and complex. One of the biggest problems is carousel fraud which causes huge losses to public budgets in many countries. Attention is devoted to the fuel market. A methodological tool that allows recognizing potential tax fraud on the basis of unusual sale prices was developed. For this reason, sale prices were collected and these could be available to judges and tax administrators when they make a decision about whether the price was usual or not. To get closer to reality, modified prices, which reflect real conditions on the market, e.g. placing goods in a tax warehouse, were also used.

Suggested Citation

  • Pavel Semerad, 2015. "How to stop VAT frauds on the fuel market: a usual price rule," MENDELU Working Papers in Business and Economics 2015-54, Mendel University in Brno, Faculty of Business and Economics.
    • Handle: RePEc:men:wpaper:54_2015
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    References listed on IDEAS

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    More about this item

    Keywords

    Carousel frauds; fuels; tax evasion; usual price; value added tax;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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