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Fighting VAT Fraud through Administrative Tools in the European Union

Author

Listed:
  • Ionela BUTU

    (University of Economic Studies, Bucharest, Romania)

  • Petre BREZEANU

    (University of Economic Studies, Bucharest, Romania)

Abstract

Tax evasion is a phenomenon inherent in the existence of tax systems, which transcends both borders and the level of development of countries. Value added tax (VAT) is an increasingly important source of revenue for the European Union (EU) Member States. Still, like every other tax, VAT is vulnerable to frauds. Because the most damaging VAT fraud schemes take place in more than one Member State, EUlevel cooperation is a necessity. The aim of this article is to analyze the steps made by the European Union to combat and prevent VAT fraud using the administrative cooperation between Member States. In the first part of the paper we presented the VAT Criticism and the proportions of VAT fraud in the EU. Second part of the paper analyses the administrative cooperation tools used by Member States in order to tackle VAT fraud, such as: SCAC (Standing Committee on Administrative Cooperation), VIES (VAT Information Exchange System), Eurofisc and TNA (Transactional Network Analysis). Also, we looked into other EU Bodies, Committees and Programmes like Europol, Eurojust and Fiscalis which support and complement the efforts of member States in the fight against VAT fraud. In the third part, there are the conclusions for this work.

Suggested Citation

  • Ionela BUTU & Petre BREZEANU, 2020. "Fighting VAT Fraud through Administrative Tools in the European Union," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(22), pages 90-101, November.
    • Handle: RePEc:aio:fpvfcf:v:1:y:2020:i:22:p:90-101
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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