- The EU’s VAT system for e-commerce, introduced in 2021, has significant flaws and allows for tax evasion.
- Traders abuse the import regime and underreport VAT by undervaluing shipments, especially from non-EU countries.
- Customs officers found errors in one-third of checked shipments and undervaluation in 61% of cases.
- Data used to combat tax evasion is incomplete and unreliable, leading to non-payment or underpayment of VAT.
- Increased customs controls at Mošnov airport led to a significant decrease in shipments, showing traders quickly adapt to enforcement.
Source: europeannewsroom.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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