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Home News & Events TAX LAW NEWS: Stronger Co-operation on VAT by European Commission and non-EU Countries

TAX LAW NEWS: Stronger Co-operation on VAT by European Commission and non-EU Countries

Tuesday, 11 February 2014 18:03

As part of the intensified on-going process against tax fraud, on 6 February 2014, the European Commission launched the process to start negotiations with Russia and Norway on administrative cooperation agreements in the area of Value Added Tax (VAT).The broad goal of these agreements would eventually be to establish a framework of mutual assistance in combating cross-border VAT fraud and in helping each country recover the VAT it is due. An estimated EUR 193 billion in VAT revenues (1.5% of GDP) was lost due to non-compliance or non-collection in 2011. While this loss is attributed to a mix of different factors, VAT fraud is certainly a principal contributor.

VAT fraud involving third-country operators is particularly a risk in the telecoms and e-services sectors.

Source: INTAX Info Newsletter