European member states to receive a ‘super weapon’ against VAT carousels and fraud.
24th May 2019: The Transactional Network Analysis (TNA) is Belgian-made data mining software with which smart algorithms can quickly uncover suspicious transactions that indicate a VAT carousel.
VAT fraud is the largest ongoing tax fraud in Europe: criminal gangs are stealing €50 billion every year from EU members states, according to the EU commission. The losses are made worse by a lack of cooperation between EU members with Germany in particular, obstructing measures to fight tax fraud.
Belgium are successfully combating VAT fraud for over a decade.
The Transactional Network Analysis (TNA) uses intuitive algorithms to quickly assess multiple international databases and review huge amounts of data to identify suspicious VAT activity and likely cases of fraud. This enables the authorities to intervene quickly, and most importantly, before the damage to the countries treasury increases.
This software has been successfully used in Belgium since 2002. In this time, Belgian authorities have managed to reduce the damage caused by VAT carousels in Belgium from €1.1 billion in 2001 to under €45 million in 2018 – an impressive 96% reduction in 15 years.
Super Weapon to roll out by end of 2019
It is estimated that EU member states lose around €50 billion each year to organised crime gangs and VAT carousels. The EU leaders are hoping the ‘Super Weapon’ success seen in Belgium will be replicated on a European-wide scale. It is estimated the in the second half of the year the software will be used by all European states.
Do you struggle to keep up with changing VAT and indirect tax obligations?
Get our monthly VAT guide to ensure you never miss another VAT update!
We know that Indirect taxes such as VAT and GST can have a huge effect on your business. As VAT rates change sporadically keeping yourself informed can be difficult. Compliance is always crucial. That’s why our Indirect Tax Experts share their hand-picked news stories every day that you need to know. From breaking news to VAT changes and new EU legislation. We know that relevant information means better decision making. We aim to be your number 1 source for VAT and GST news.
See more Taxback International Articles
Switzerland: Mandatory VAT return e-filing in 2020
27th November 2019: Switzerland is one of the last countries to allow paper filing but the electronic submission of the Swiss VAT return will become obligatory from 1/1/2020.
Japan: Consumption Tax update (November 2019 update)
Hungary: Government Submits Tax Bill
20th November 2019: Hungary's Ministry of Finance announced that it has submitted to parliament the seventh and final part of its Economic Action Plan,