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VAT News
vious century, i.e. Directive 7 / 08. Although that Directive
has recently been codified and replaced by Directive
2008/ of 2 May 2008, this instrument has,
according to the Commission, proved to be insufficient
to meet the requirements of the internal market as it has
evolved in the last 0 years.
The mobility of persons and capital in the mid-1970s of
the previous century is not comparable to the mobility
today. Today, fraudsters take advantage of the territorial
limitations on the powers of national tax authorities,
which enable them to hide from the authorities transactions
carried out in another Member State or organize
insolvencies in Member States where they have tax debts.
It can be derived from economic literature that tax fraud
generally amounts to 2% to 2. % of GDP, i.e. between
EUR 200 and 2 0 billion. VAT carousel fraud is one of
the biggest problems, but smuggling and counterfeiting
alcohol and tobacco products (excise duty fraud) and
fraud in the field of direct taxation are equally serious.
The draft Directive on mutual assistance as regards the
recovery of taxes intends to reinforce and improve the
recovery assistance between the Member States. According
to the Commission, it should help to increase the
recovery ratio, which currently amounts to only % of
the total for which recovery assistance is requested.
IP/09/201 of 2 February 2009 and COM(2009) 28.
Council Decision – Border bridges – Czech Republic
and Germany
On 10 February 2009, the Council of the European
Union adopted a Decision authorizing the Czech
Republic and Germany to apply measures derogating
from Art. of Directive 200 /112 in relation to the construction
and subsequent maintenance of one border
bridge, and the maintenance of 22 existing border
bridges, all of which are partly on the territory of the
Czech Republic and partly on the territory of the Federal
Republic of Germany. The details of the bridges in question
are listed in the Annex to the Decision. The authorization
will automatically be extended to the construction
and maintenance of any additional bridges, which
are brought within the scope of the Agreement by an
exchange of diplomatic notes.
Under this decision, as regards the border bridges in
respect of which the Czech Republic is solely responsible
for maintenance, the bridges are deemed to be part of the
Czech territory for the purposes of supplies of goods and
services and intra-Community acquisitions of goods
intended for maintenance of these bridges; as regards the
border bridge in respect of which Germany is responsible
for construction and maintenance and the border bridges
in respect of which Germany is solely responsible for
maintenance, the bridges are deemed to be part of the German
territory for the purposes of supplies of goods and
services and intra-Community acquisitions of goods
intended for construction or maintenance of these bridges.
Council Decision 2009/118/EC of 10 February 2009, OJ
L41 of 12 February 2009.
Anti-fraud agreement with Switzerland
On 17 February 2009, the Cooperation Agreement
between the European Community and Switzerland
aimed at combating fraud and any other illegal activities
to the detriment of their financial interests (“the Agreement“),
which was signed on 2 October 2004, and the
Council Decision of 18 December 2008 relating thereto,
were published in the Official Journal of the European
Union.
The objective of the Agreement is to extend administrative
and mutual legal assistance in criminal matters
between the European Union and Switzerland. The
Agreement covers administrative and criminal procedures
aimed at prevention, detection, investigation, prosecution
and repression of fraud or any other illegal activity
involving, inter alia, violation of the legislation on
VAT, special consumption taxes and excise duties.
Council Decision 2009/127/EC of 18 December 2008,
OJ L 4 of 17 February 2009, p. .
Anti-fraud agreement with Liechtenstein – Ecofin
At the meeting of the EU Council for Economic and
Financial Affairs (Ecofin Council) on 10 February 2009,
the Council took note of the fact that the Commission
has submitted, on 11 December 2008, a proposal for a
Council Decision on the signing, on behalf of the Community,
of the Cooperation Agreement between, on the
one part, the European Community and its Member
States and, on the other part, the Principality of Liechtenstein,
to combat fraud and any other illegal activities
to the detriment of their financial interests.
Following the discussion held at the meeting of the
Council on 4 November 2008, the Council strongly
invited the Commission to continue the negotiations
with Liechtenstein, in conformity with the mandate of
200 , in order to obtain such changes in the text of the
draft agreement to ensure effective administrative assistance
and access to information with regard to all forms
of investment, in particular foundations and trusts.
As regards the provision of information in tax matters to
the Member States, the Council expects Liechtenstein to
encompass in the agreement with the European Community
and its Member States obligations that are at least
similar in scope as those which Liechtenstein recently
agreed on with other countries.
Finally, the Council called on the Commission to report
back on any progress at one of its forthcoming meetings,
at the latest in May 2009.
Press release 2922nd Council meeting.
VAT fraud – Fiscalis Seminar
The Dutch tax and customs administration and the
European Commission held a one-day Fiscalis seminar
in Amsterdam on 2 January 2009 on fighting VAT
fraud. The participants exchanged views and ideas on
measures contained in the Commission’s Communication
on a coordinated strategy to improve the fight
144 INTERNATIONAL VAT MONITOR MARCH/APRIL 2009 © IBFD