- Member states and payment service providers are not prepared for new European regulations aimed at preventing VAT fraud.
- The regulations are set to take effect on January 1, 2024, but PWC warns that the parties involved may not be able to meet the new standards by then. According to PWC, many countries have yet to start implementing the regulations.
- The new rules involve the creation of a single European database where all transactions will be collected, allowing VAT fraud inspectors to browse for potential fraud.
- The EU hopes that this system will help recover billions of euros lost to VAT fraud each year.
- However, there are concerns about the readiness of member states to comply with the regulations, as well as challenges related to handling large amounts of data and privacy issues.
- PWC also points out that the lack of context provided in the data entering the system may hinder investigations into VAT fraud.
Source bnr.nl
