European Commission publishes VAT compliance gap due to Missing Trader Intra Community fraud report

27 March 2024

The European Commission (EC) has published a report attempting to analyse missing trader intra-community (MTIC) VAT fraud. 

MTIC is a type of VAT fraud in which a fraudulent trader supplies goods and services to other businesses, collects the tax due on the supply from their customers, and disappears without ever remitting it to the tax authorities.

MTIC fraud is estimated to have lost EU member states between €50 to €100 billion in VAT revenue, and the EC believes that this type of fraud amounts to a significant portion of the wider EU VAT Gap, which was last estimated to be around €61 billion per annum back in 2021.

This report analyses the methodologies that will be used for further reports and the future calculations that will be used to try to quantify the cost that this type of fraud has on EU countries. It also looks in detail at the different types of MTIC fraud including carousel fraud.

Are you trading globally? Whether you require basic VAT advice or specific VAT compliance support, Fiscal Solutions can help. Our team of multi-lingual experts are knowledgeable in all the different VAT rules in Europe and around the world.

We help you simplify today’s complexities and address tomorrow’s challenges. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.

Get in touch

Let us solve your current business VAT challenges

CONTACT US
LATEST NEWS

Democratic Republic of Congo introduces VAT on...

In January 2024, the Democratic Republic of Congo introduced VAT at 16% on the sale of digital services by non-resident providers to local consumers. This was...

SEE MORE
VAT news
LATEST NEWS

Zambia introduces VAT on e-services for non-resident...

During February 2024, the Zambian tax authority published the VAT (Cross Border Electronic Services) Regulations, 2024. These regulations clarify that from 1...

SEE MORE
VAT news
LATEST NEWS

Poland confirms that the zero VAT rate on basic...

The Polish Ministry of Finance confirmed that the two-year VAT rate cut on basic foodstuffs will end on 31 March 2024. This will see the VAT rate on essential...

SEE MORE
VAT news

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.