The European Commission presented a plan this Wednesday to combat VAT fraud and hopes to recover 40 billion euros per year, which is 80% of the total amount of money currently escaping them.
There is currently a so-called transitional VAT regime in Europe, which has been in place since 1993! The country selling a product does not pay VAT, as it is the purchasing country that pays it, according to the national rate.
So Brussels wants to establish a new system: the seller would now pay VAT in their country, but at the rate applied in the purchasing country, to then remit it.
Is fraud over? The fact remains that this tax reform must be unanimously approved by the Member States to come into effect.
In France, it is currently the figures in the fight against tax fraud that are breaking records. 2015 was indeed a record year: the tax services recovered 21.2 billion euros from businesses and individuals.
