VAT registration guide

 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.

One of the most important measures to assist a tax administration (hereafter ‘TA’) to prevent VAT fraud is to improve the VAT Registration process. There are many ways of improving the process, and this IOTA VAT Registration Guide aims to present a number of methods, ideas and procedures that have been adopted by the IOTA member TAs to improve the process, including the use of pre- and post-registration controls specifically aimed at identifying and preventing VAT fraud.

During the preparation of the material used in this publication, input was provided by members from the IOTA Area Group “Prevention and Detection of VAT Fraud”, which comprises representatives from the majority of the IOTA member tax administrations.

The IOTA Secretariat would like to thank all of them and particularly the following Task Team members: Heidar Hilmarsson (Sweden), Patrick Hackett (Norway), Laima Sinkeviciene (Lithuania) and Fabio Celozzi (Italy) who compiled this report.

The Task Team would also like to thank Mark Crawford for his significant input to the report and his valuable support in arranging a meeting with UK colleagues at HMRC.

We also thank the Dutch tax administration for allowing us to adopt parts of their handbook on how to tackle Missing Trader Intra-Community (MTIC) VAT fraud.