Performance improvement has always been and will continue to be an important topic for the Tax Administrations. Like most organisations, nowadays Tax Administrations are required to become more effective and efficient, execute better business strategy, do more with fewer staff and implement innovative solutions that ensure realresults and improved performance.

 The VAT identification number is a key feature in every VAT system. In the case of intra-Community trade within the EU the VAT number is an essential element to enable the supplier to decide whether or not to charge VAT on his supply. Without a VAT identification number it is impossible for the fraudster to perpetrate VAT fraud!

VAT fraud in the IOTA region leads to severe budget losses and violates the principle of fair taxation, bringing distortions to capital movements and the conditions of competition.

During recent years there have been fraud cases where VAT refund claims have been used in the fraud scheme. Unfortunately, the cases are frequently detected by the tax administration after the VAT has been refunded. The general experience from these cases is that it is difficult to recover the losses - the fraud has to be stopped before the VAT is refunded.