Tax Frauds in Cross-Border Trade
doc. Ing. Alexej Sato, CSc., University of Economics, Prague, Department of Foreign Business

Value added tax collection represents an important part of the state budget for all EU member states. Growing state expenses and the recurring economic and financial crisis have led EU member states to a deep dependence on VAT revenues. Organized groups of tax fraudsters exploit gaps in current tax legislation to achieve unjust enrichment. This paper describes some carousel fraud practices in VAT collection most frequently used in the Czech Republic. It summarizes the measures taken by the tax administration and evaluates the effectiveness of their application.
Keywords: Value added tax, tax collection, state budget, carousel frauds.