IOTA Forum on Combating VAT Fraud

The event took place in Sarajevo, Bosnia and Herzegovina, and brought together 40 tax officials from 36 IOTA member tax administrations, along with more than 170 participants joining online. We were pleased to have representatives from our international partner organisations, including the Organisation for Economic Cooperation and Development (OECD), the European Commission's DG TAXUD, as well as enforcement agencies such as the European Public Prosecutor's Office (EPPO) and the European Anti-Fraud Office (OLAF).

The VAT Forum's annual meetings aim to enhance collaboration among IOTA member tax administrations, fostering understanding, knowledge, and trust. These meetings also provide updates on new methods to address VAT fraud.

Over the course of the two-day event, participants identified emerging VAT fraud trends, both in goods and services/intangibles. They shared insights on actual VAT fraud cases, highlighting how early detection tools and strategies, such as utilising new data from e-invoicing, online platforms, and payment data, have been essential in preventing fraud and safeguarding revenue. Representatives from various IOTA member countries—including the host, Bosnia and Herzegovina (ITA), along with Austria, Azerbaijan, Belgium, Denmark, France, Germany, Italy, Luxembourg, Hungary, Romania, Switzerland, and the United Kingdom—contributed to these discussions.

The Forum was opened by Muharem Mašinović, Assistant Director of the Indirect Taxation Authority of Bosnia and Herzegovina, who set the stage for a series of country presentations and group discussion sessions. The first plenary session explored new VAT fraud trends with reflections from the following IOTA member countries:

• Luxembourg: ‘Trade Based Money Laundering Using Fast-Moving Consumer Goods or Excise Related Goods in a Labour Intensive Sector’ presented by Serge Hollerich;
• Italy: ‘Tax Representatives: The Italian Approach Against Fiscal Risks and VAT Fraud’ presented by Andrea Damiani;
• Belgium: ‘Detection of Fraudulent VAT Refunds’ presented by Nicolas Lambrecht (joined online).
• The second plenary session focused on real cases of VAT fraud and their detection, featuring presentations from IOTA member countries:
• Austria: ‘Austrian Fraud Cases’ presented by Wolfgang Kolar (joined online);
• Bosnia and Herzegovina (ITA): ‘Combating VAT Fraud in Construction-Related Businesses by Tracking Concrete as a Critical Input’ presented by Jasmin Šljivić;
• Hungary: ‘Actions Against Fraudulent Chains Operating in The Natural Gas Trading Sector’ presented by Bence Weisz;
• Romania: ‘VAT Fraud Involving Missing Traders and Fictitious Invoices’ presented by Andreea Stancu;
• United Kingdom: ‘VAT Fraud ’ presented by Lian Jenkins (joined online);
• Azerbaijan: ‘VAT Fraud Under the Microscope and Revealing VAT Fraud Schemes Through Field Audits’ co-presented by Chimnaz Talibova & Elin Nadirli.

On the second day of the event, attendees enjoyed additional insightful presentations that continued to explore real cases of VAT fraud. Discussions emphasised early detection methods in sectors such as used car trades, car exports to both EU and non-EU countries, and the video game industry. Presentations were delivered by representatives from the following IOTA member administrations:

• Germany: ‘Used Car Trade: Preventive Measures at the Local Level’ presented by Anna Fath;
• Switzerland: ‘Car Exports to EU and Non-EU Countries’ presented by Deborah Wettstein;
• France: ‘Reduction of VAT-Taxable Revenue in the Video Game Sector’ presented by Laetitia Taillefumier;
• Denmark: ‘VAT Fraud: Early Detection and Prevention in Denmark’ presented by Ann-Katrin Tønnesen.

Additionally, a plenary session was dedicated to the key findings of the IOTA Project on "The Use of Alternative Payment Systems in Cross-Border VAT Fraud Schemes," presented by the project leader, So Young Kim, from the Norwegian Tax Administration.

The audience received updates on transnational efforts against VAT fraud by EPPO, gained insights into the OECD's approach to collecting, managing, and exchanging information and data, and explored recent developments in the EU's regulatory framework for combating VAT fraud, as presented by the EU Commission's TAXUD.

• EPPO: ‘The transnational fight against VAT fraud:  EPPO’s investigations impact on the VAT fraud ecosystem’ presented by Nelson Macedo da Cruz;
• OECD: ‘Collecting, Managing, and Exchanging Information and Data: A challenge for tax administrations’ presented by Tim Renner;
• EU Commission, TAXUD: ‘Developments in the EU Regulatory Framework for the Fight Against VAT Fraud’ presented by Francisco Fernández Monge (joined online).

Each presentation concluded with an interactive Q&A session, allowing attendees to engage in group discussions about key issues related to VAT fraud cases and to explore new approaches and opportunities for early detection. All materials and presentations are now available online on the event's webpage, and the photo gallery and video recording of the event will be made available soon on the same platform. This event was facilitated by IOTA International Taxation Experts Massimo Morarelli and Ivana Donchevska.