Countering VAT Fraud in B2C Trade with 3rd Territories and 3rd Countries

Dr. Elena Fuchs

doi:10.5771/9783748944638

Summary

An analysis of the provisions of the VAT Directive following the adoption of the VAT e-commerce package makes it clear that the amended provisions cannot effectively prevent VAT fraud, particularly in the area of third-country B2C transactions. The work therefore offers an innovative approach to verifying the declared value upon importation of the goods. The encrypted transmission of payment information allows customs authorities to compare the value declared for a consignment with the price paid by the customer and thus prevent fraud.

Keywords

Search publication

Bibliographic data

Copyright year: 2024
ISBN-Print: 978-3-7560-1788-1
ISBN-Online: 978-3-7489-4463-8
Publisher: Nomos, Baden-Baden
Series: Steuerwissenschaftliche Schriften
Volume: 89
Language: English
Pages: 300
Product type: Book Titles

Titelei/Inhaltsverzeichnis No access Pages 1 - 26
1. I. Robustness of the EU VAT System to the Growth of E-commerce No access
2. II. Fighting VAT Fraud in B2C (E-commerce) Transactions: Approach by the EU Commission and Research Objective No access
3. III. Literature Review No access
4. IV. Innovative Proposal for a “Cryptographic System” No access
5. V. Overview of Structure No access
1. 1. 1. a. General VAT Treatment of Imports No access
    2. 1. aa. Import VAT Exemption for Low-value Consignments No access
      2. bb. Rules on the Place of Supply No access
      3. cc. Special Characteristics of Imports via Intermediaries No access
  2. 1. a. General Customs Treatment of Imports No access
    2. 1. aa. Customs Rules of Consignments with a Value below EUR 10/22 No access
      2. bb. Goods in Postal Consignments No access
  3. 3. Link between VAT and Customs Law No access
2. 1. 1. a. Overview No access
    2. b. VAT Evasion Through Customs Procedure 42 No access
    3. c. VAT Evasion through Undervaluation No access
    4. d. VAT Evasion through Misdeclaration of Imports No access
    5. e. VAT Evasion through Non-declaration of Sales No access
  2. 2. Electronic Interfaces as Accelerators for VAT Fraud No access
  3. 1. a. Loss of Tax Revenue No access
    2. b. Distortion of Competition No access
3. III. Summary No access
1. 1. 1. Evolution of the VAT E-commerce Package No access
  2. 2. Removal of the Import VAT Exemption for Consignments of Negligible Value No access
  3. 1. a. Amendments to the VAT Directive No access
    2. b. Amendments to the UCC-DA No access
    3. c. Amendments to the Regulation on Administrative Cooperation No access
  4. 4. Special Arrangements for the Declaration and Payment of Import VAT No access
  5. 5. Deemed Supply of Electronic Interfaces No access
2. 1. 1. Relevant Criteria for the Evaluation of the Measures No access
  2. 1. 1. aa. Removal of the Import VAT Exemption for Consignments of Negligible Value No access
      2. bb. Distance Sales of Goods Imported from Third Territories/Countries No access
      3. cc. Special Arrangements for the Declaration and Payment of Import VAT No access
      4. dd. Deemed Supply of Electronic Interfaces No access
    2. 1. aa. Removal of the Import VAT Exemption for Consignments of Negligible Value No access
      2. bb. Distance Sales of Goods Imported from Third Territories/Countries No access
      3. cc. Special Arrangements for the Declaration and Payment of Import VAT No access
      4. dd. Deemed Supply of Electronic Interfaces No access
  3. 3. Proportionality of the Measures No access
  4. 4. Efficiency of the Measures No access
  5. 5. Sustainability of the Measures No access
  6. 6. Coherence of the Measures No access
3. 1. 1. Description of the Measure No access
  2. 2. Effectiveness Regarding Prevention of Fraud No access
  3. 3. Proportionality of the Measure No access
  4. 4. Efficiency of the Measure No access
  5. 5. Sustainability of the Measure No access
  6. 6. Coherence of the Measure No access
4. 1. 1. Fraud Schemes to Lower the Import VAT Burden No access
  2. 2. Enforcement Jurisdiction as Limitation of Anti-Fraud Measures No access
5. V. Summary No access
1. 1. 1. Overview of the Proposal No access
  2. 2. Utilization of Cryptography No access
  3. 3. Role of Payment Service Providers No access
2. 1. 1. Application to the Standard VAT Procedure and the Special Arrangements Scheme: Fraud Prevention No access
  2. 1. a. General Remarks No access
    2. b. Improved Fraud Detection No access
3. 1. 1. A Mismatch between the Customer and the Payer No access
  2. 2. Payment Received by a Person Other than the Supplier No access
  3. 1. a. Determination of the VAT base No access
    2. b. Accounting for Transport Costs No access
    3. 1. aa. Payment in Euro No access
      2. bb. Payment in the National Currency of the Customers’ Resident State No access
      3. cc. Payment in the National Currency of the Country Where the Seller is Established No access
  4. 4. Price Adaptions After Payment No access
  5. 1. a. Payment via “Cash on Delivery” No access
    2. b. Purchase on Account No access
    3. c. “Cash” Payments No access
    4. d. Payment via Voucher No access
    5. e. Payment via Cryptocurrencies No access
    6. f. Payment via PSP Established in a Third Country No access
  6. 6. Splitting-Up and Grouping of Consignments No access
  7. 7. Splitting-Up of Payments No access
  8. 8. Returned Consignments No access
  9. 9. Reuse of Cypher Texts No access
  10. 10. Data Protection No access
4. 1. 1. Communication with the PSPs No access
  2. 1. a. Amendments to the VAT Directive No access
    2. b. Amendments to the CIR No access
    3. c. Amendments to the Regulation on Administrative Cooperation No access
  3. 1. a. Amendments to the UCC-DA No access
    2. b. Amendments to the UCC-IA No access
    3. c. Information for Customs Authorities No access
  4. 4. Information Provided to the Commission No access
  5. 5. Implementation of the System No access
5. 1. 1. a. Splitting-up of Payments No access
    2. b. Misdeclaration of Consignments No access
    3. c. Non- or Lower Payment of VAT via the IOSS No access
  2. 2. Determination of Applicable VAT Rates No access
  3. 3. Increased Responsibility of Customs Authorities No access
  4. 4. Consignments not Covered by the System – Goods with a Value Exceeding EUR 150 No access
6. 1. 1. Effectiveness No access
  2. 2. Efficiency No access
7. VII. Summary No access
E. Conclusion No access Pages 257 - 266
Bibliography No access Pages 267 - 300