VIDEO: VAT Fraud
What do organised crime, borders and €50 billion euros a year have in common? The answer might surprise you. It’s VAT – Value Added Tax. To be more precise it’s the fraud on VAT that is due when goods cross borders in the EU.
In this video Commissioner Moscovici explains how €50 billion is stolen from the Member States’ treasuries every year instead of being used to boost economic growth, build schools, hospitals or invest in Small and Medium-sized enterprises. The European Commission wants to ensure that VAT is also charged on cross-border transactions, as is the case for domestic sales. Reform will help cut cross-border VAT fraud by 80% and get money back to the Member States’ coffers.