’Drastic’ EU reform needed to fight VAT fraud
Fraud in EU reaches €60bn (£41bn) a year
‘Drastic’ reform measures to counter massive cross-border value-added tax
fraud are needed, according to EU tax commissioner Laszlo Kovacs.
Kovacs said the EU would call on its 25 member states to undertake ‘drastic’
reform to counteract the fraud, which is estimated to cost 10% of all
cross-border sales, the FT reported.
Kovacs is calling for VAT to be charged and paid up front, at the beginning
of the supply chain. He is expected to table this proposal at the EU finance
ministers next monthly meeting on 7 June.
Kovacs said his proposal was ‘the most innovative and the most promising
solution’, but also ‘the most difficult to achieve because it would need