Momskarruseller: Hvad kan en virksomhed gøre for at sikre sig?

Lone Berthou

Student thesis: Master thesis

Abstract

VAT fraud has been a problem since the introduction of the European Union in 1973. This paper deals with a particular kind of VAT fraud – the VAT carousel. A VAT carousel involves three or more companies: A Missing Trader, which is a company created for the purpose of amassing a large VAT debt, and one or more Brokers, who buys from the missing trader, and sells the goods on to the final link in the trade chain. In this chain, the missing trader and the final link are both willing participants in the VAT carousel, while the brokers may or may not know of their participation in the carousel. As the missing trading is not paying VAT it can sell the goods much more cheaply than on the free market. This will also benefit the Broker and the final link in the chain. When the authorities try to collect the owed VAT from the missing trader, the missing trader will file for bankruptcy, leaving the authorities with VAT loss. VAT carousels are a problem for both the EU as a whole, and for the individual countries. Legislative efforts have been introduced in order to combat the problem. In Denmark, recent legislative changes have enabled the authorities to demand liability from unwilling participation in VAT carousels in cases of negligence. In order to prevent unwilling participation in VAT carouses, companies have a number of options. Firstly, companies ought to make sure that their business partners are in fact who they claim to be. In order to do this, a company might check addresses, web pages, and public registers such as the VAT register. Secondly, a company should be aware of any irregularities in dealings with their business partners. Irregularities in payment or shipping might be indicators of fraud. Likewise, it might be wise to make sure that any personal contacts are in fact known by one’s business partners. In relation to this, a company should beware if a contact insists on meeting away from the business partner’s address.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2008
Number of pages90