1. Fight with VAT fraud - Estonian Experience
Egon Veermäe
Deputy Director General
27th September 2013

2. Tax Collection Efficiency

3. VAT collection

4. Tax gap
Maksuauk 2012 kokku praeguse seisuga: 458,2 mln €

5. We know for years… Do we act accordingly!?!
Big revenue losses
Unfair competition
Characteristic of the fraud and the fraudsters:
short duration of “economic activity”- max 3 month
declares taxes, without real payments
easy to start fraudulent activity
no assets
starting with controls fraudsters stopped their activity/starting with a new one
cross border transactions – carousel fraud

6. Chasing the “rabbit” – reverse charge mechanism
“Raw gold” Scrap

7. VAT Obligation in Fuels’ Sector
What has been changed?
VAT Obligation in Fuels’ Sector
150 mln € additional VAT to the budget ( – )
The number of companies in the fuel (sale) sector has been decreased 50% ( :374; : 176)

8. How to proceed? Current VAT system needs to be overlooked!
In EU VAT gap is 100 billion EUR in one year!!
Are we satisfied?
Do the traditional means - control, criminal procedures, reverse charge – work enough?

9. Shadow economy
Seller
Buyer
State

10. Äripäev, April 2013 – Crazy Plan
Transaction information (up from 1000 €)
VAT is collected by tax and customs board (transactions up from €)

11. Legal changes
VAT declaration with detailed transaction information
Extension of VAT refund control period from 30 days to 60 days

12. VAT payment via Tax and Cusoms Board – Estonia can be the first one
Buyer
Pay for service or goods
Seller
Bank
VAT
KMD INF
KMD INF
State
SAF
SAF

13. Thank you!