"Through organized sales tax fraud, Germany and the EU escape billions in the double-digit range every year," said FDP parliamentary group vice Christian Dürr of the "editorial network Germany" (Thursday editions). "Before governments run up more and more debts that all honest taxpayers have to repay, criminal tax fraud should first be prevented," he said.
The grand coalition has so far left this issue by the wayside. “That has to be over. I expect the German government to advocate a reform of the VAT system within the framework of the EU Council Presidency, ”demanded the financial expert. Criminal gangs take advantage of the complex VAT law in the EU to cheat the tax authorities out of billions every year. For example, fraudsters in so-called carousel shops can have their tax refunded by the tax offices with the help of complicated retail chains without having to pay the sales tax themselves. The resulting tax losses in Germany are estimated at a double-digit billion amount. Across Europe, the EU Commission is assuming damage of 50 billion euros per year in carousel transactions alone. Dürr advocates changing the sales tax payment system across Europe for deliveries between companies. Currently, the supplier pays the VAT to the tax authorities, while the recipient of the delivery can have the tax paid reimbursed (input tax deduction). In the so-called reverse charge procedure, the recipient of the service pays the VAT directly to the tax authorities. Sales tax payment and the right to deduct input tax therefore remain with one company. “This is how we can effectively fight sales tax fraud,” said Dürr.