Value Added Tax frauds, particularly Carousel frauds committed in EU and the Slovak Republic.

What is it about?

Article provides compact information concerning VAT fraud schemes which occur within the European Union. It identifies problems within the EU VAT system and presents strategies how to tackle VAT frauds, as well as suggests de lege ferenda proposals in order to protect state's budgets. This article focuses on details of functioning of the EU VAT system, it explains relevant sections of the Slovak Penal Code Act focusing on legal issues which arise in practise. Article includes examples of criminal conducts falling within the definitions of relevant sections of the Slovak Penal Code Act.

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Why is it important?

Tax criminality is a phenomenon of today. Financial crimes threaten the strategic, political and economic interests of states. Tax criminality is a consequence of globalisation, economic changes, elimination of internal borders and expansion of electronic services. The aim of this contribution is to elaborate on the institute of VAT frauds, with emphasis on Carousel frauds. Objective of the article is to present de lege ferenda solutions to protect state's revenues from VAT.