An analysis of selected EU measures combating cross-border e-commerce vat fraud
type: CreativeWork
description: Purpose: This study analyses VIES, the RCM, Recapitulative Statements, the Quick Fixes, the E-Commerce Package, CESOP and ViDA. It analyses the implications of the requirements of these measures, or the expected implications in the case of upcoming measures, on local tax practitioners and the perceived implications on local businesses. Local perspectives on their effectiveness in combating CE VAT fraud are also assessed. Lastly, this study evaluates recommendations for their improvements and for further EU and national measures to combat CE VAT fraud. Design: A mixed-methods approach was adopted. In total, 19 semi-structured interviews were conducted with 17 local tax practitioners and 2 MTCA officials. Findings: The selected measures’ implications on tax practitioners include time spent on education and training, increased workloads, and closer client cooperation, although their extensive requirements can also strain practitioner-client relationships. Automation under ViDA is expected to shift practitioners towards consulting and system design roles. Perceived implications on in-scope local businesses include implementation and compliance costs, yet these vary across the selected measures. Mixed growth and competitivity implications were also highlighted, with smaller businesses being disproportionately affected. All the measures were rated as effective or very effective against CE VAT fraud, with ViDA rated highest and the RCM lowest. Several local and EU factors hinder the selected measures’ effectiveness and broader efforts to combat CE VAT fraud. Measures beyond VAT are also effective against such fraud. Recommendations for the selected measures’ improvements centred around the e-commerce package, CESOP and ViDA. Additional EU anti-CE VAT fraud measures could involve simplifying the VAT system, enhancing proactivity, cash-tracking, and post-implementation studies as a new yardstick for success. Nationally, enhancing MTCA’s enforcement, domestic digital reportin…
abstract: Purpose: This study analyses VIES, the RCM, Recapitulative Statements, the Quick Fixes, the E-Commerce Package, CESOP and ViDA. It analyses the implications of the requirements of these measures, or the expected implications in the case of upcoming measures, on local tax practitioners and the perceived implications on local businesses. Local perspectives on their effectiveness in combating CE VAT fraud are also assessed. Lastly, this study evaluates recommendations for their improvements and for further EU and national measures to combat CE VAT fraud. Design: A mixed-methods approach was adopted. In total, 19 semi-structured interviews were conducted with 17 local tax practitioners and 2 MTCA officials. Findings: The selected measures’ implications on tax practitioners include time spent on education and training, increased workloads, and closer client cooperation, although their extensive requirements can also strain practitioner-client relationships. Automation under ViDA is expected to shift practitioners towards consulting and system design roles. Perceived implications on in-scope local businesses include implementation and compliance costs, yet these vary across the selected measures. Mixed growth and competitivity implications were also highlighted, with smaller businesses being disproportionately affected. All the measures were rated as effective or very effective against CE VAT fraud, with ViDA rated highest and the RCM lowest. Several local and EU factors hinder the selected measures’ effectiveness and broader efforts to combat CE VAT fraud. Measures beyond VAT are also effective against such fraud. Recommendations for the selected measures’ improvements centred around the e-commerce package, CESOP and ViDA. Additional EU anti-CE VAT fraud measures could involve simplifying the VAT system, enhancing proactivity, cash-tracking, and post-implementation studies as a new yardstick for success. Nationally, enhancing MTCA’s enforcement, domestic digital reportin…
language: en
keywords: Value-added tax -- Malta, Electronic commerce -- Malta, Tax evasion -- Malta
date published: 2024
date modified: 2026-07-27T20:11:43Z
provider: University of Malta
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Malta