- VAT carousel fraud causes billions in damages across the EU, distorting competition and costing Germany up to €14 billion annually.
- The European Public Prosecutor’s Office (EUStA) is coordinating efforts to combat VAT fraud, with recent investigations uncovering large-scale criminal networks, such as the “Emily” case in luxury car trading.
- New legal provisions (§§ 13b and 25f UStG) significantly increase liability and due diligence requirements for businesses.
- E-commerce companies must critically assess their supply chains and business partners to avoid involvement in fraudulent schemes.
- VAT carousel fraud involves complex cross-border schemes exploiting EU tax rules, using shell companies and fake transactions to evade tax payments.
Source: roedl.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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