European Commission / Taxation and Customs Union VAT fraud: a common concern for businesses and tax administrations Outline of a coordinated strategy to improve the fight against VAT fraud in the EU Alexander Wiedow Director, DG TAXUD Directorate D, Indirect taxation and tax administrations Fiscalis Seminar on VAT fraud Amsterdam-Schiphol, 23 January 2009

European Commission / Taxation and Customs Union 23 January 2009 Fiscalis seminar VAT fraud: a common concern for businesses and tax administrations 2 Tackling Fraud Main Concerns Tax Administrations Loss of revenue Substantial resources Less compliance Businesses Administrative burdens Risk of getting involved Unfair competition These concerns are common Unfair competition Loss of revenue

European Commission / Taxation and Customs Union 23 January 2009 Fiscalis seminar VAT fraud: a common concern for businesses and tax administrations 3 Establishing an EU anti fraud strategy Start: Communication 31 May 2006 –large debate on a range of measures Discussions –ATFS, Council, Business representatives, Conference 29 March 2007 Council conclusions –provided guidance Communication 1 December 2008 Legislative proposals

European Commission / Taxation and Customs Union 23 January 2009 Fiscalis seminar VAT fraud: a common concern for businesses and tax administrations 4 Commissions communication 1 December 2008 Two objectives Sets out a short term action plan with legislative proposals for –Prevention of VAT fraud –Detection of VAT fraud –Collection of unpaid tax Initiates a reflection on a longer term strategy

European Commission / Taxation and Customs Union 23 January 2009 Fiscalis seminar VAT fraud: a common concern for businesses and tax administrations 5 Communication 2008 conventional measures (effecting businesses and Member States) Reducing timeframes for submitting recapitulative statements Joint and several liaibility Conditions for VAT exemption at importation Common Minimum Standards for registration and deregistration of taxable persons Invoicing rules More enhanced cooperation between Member States, incl. EUROFISC

European Commission / Taxation and Customs Union 23 January 2009 Fiscalis seminar VAT fraud: a common concern for businesses and tax administrations 6 Communication 2008 a longer term strategy (1) Technological developments –E-government –E-taxation –E-audit –Real time communication between business and tax administrations

European Commission / Taxation and Customs Union 23 January 2009 Fiscalis seminar VAT fraud: a common concern for businesses and tax administrations 7 Communication 2008 a longer term strategy (2) Compliance strategies –Transparency, understanding and trust –Horizontal monitoring –Compliance covenants –Tax control frameworks –Certification

European Commission / Taxation and Customs Union 23 January 2009 Fiscalis seminar VAT fraud: a common concern for businesses and tax administrations 8 Objective of the seminar Debate with all stakeholders involved –Businesses –Member States –Commission Discussion on the short term measures Reflection on a longer term anti fraud strategy

European Commission / Taxation and Customs Union 23 January 2009 Fiscalis seminar VAT fraud: a common concern for businesses and tax administrations 9 Workshops Methodology:3 workshops –1. Conventional measures and their impact on businesses and tax administrations –2. Digital solutions to fight fraud –3. Compliance strategies as a tool to fight fraud Potential outcome –Input for discussions in Council –Enhanced cooperation between Member States and businesses

European Commission / Taxation and Customs Union 23 January 2009 Fiscalis seminar VAT fraud: a common concern for businesses and tax administrations 10 Thank you for your attention and have an interesting discussion Taxud website in English: Taxud Newsflash: