- A VAT carousel fraud involves a trader receiving VAT but not paying it to the Belgian State, resulting in financial loss for the treasury.
- Entrepreneurs can unintentionally become involved in VAT carousel fraud, leading to consequences such as the refusal of input tax deduction and potential joint and several liability for unpaid VAT.
- VAT carousel fraud can take various forms, often involving complex trade chains across multiple EU countries. It can include sham transactions or the delivery of different goods than agreed upon.
- Examples of carousel fraud include the supply of goods from one company to another without declaring an intra-Community acquisition and the subsequent non-payment of VAT by the fraudulent company.
- Entrepreneurs should be vigilant for signs of VAT fraud, such as unusually low prices, changing suppliers or buyers, and the involvement of fake companies established specifically for fraudulent purposes. It is important to exercise caution and gather additional information before engaging in business transactions.
Source financien.belgium
