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Vat Fraud In The Customer Chain - The German Perfect Storm Cases, Richard Thompson Ainsworth
Vat Fraud In The Customer Chain - The German Perfect Storm Cases, Richard Thompson Ainsworth
Faculty Scholarship
German civil and criminal courts have not always agreed over whether to allow a taxpayer to zero-rate intra-Community supplies when the taxpayer making the supply knew (or should have known) that his buyer in the other Member State intended to fraudulently evade VAT as a missing trader. This is no longer the case. Zero-rating of intra-community supplies is now being denied in German civil and criminal courts.
This paper considers how far Germany appears to be extending the law in this area. In 2011 six cases were heard by the Bundesfinanzhof (German Supreme Tax Court) that demonstrate both (a) the …
A Perfect Storm In The Eu Vat: Kittel, 'R' And Marc, Richard Thompson Ainsworth
A Perfect Storm In The Eu Vat: Kittel, 'R' And Marc, Richard Thompson Ainsworth
Faculty Scholarship
EU VAT authorities are close to turning the tables on missing traders. For many years organized fraudsters have been stealing huge amounts of VAT on the domestic re-sale of exempt cross-border supplies. Losses have been enormous whether the transactions are in goods (notably cell phones and computer chips) or in tradable services (CO2 permits and VoIP). No market has been safe from the fraudsters.
Answers are developing, but these answers may look more like Armageddon than measured enforcement. Solutions are so draconian, and so all-encompassing that very few intra-community traders will feel safe from the gathering storm. The situation is …