A New Defence for Victims of EU Missing-Trader Fraud?

The downside of the system of fractionated remittance of VAT is that it makes the VAT system vulnerable to missing-trader fraud. Despite all anti-fraud measures that have already been taken in the European Union, the phenomenon of missing traders seems not to be under control. However, the accumulated anti-fraud measures and practices of the tax authorities have resulted in unacceptably high compliance burdens and uncertainty for the business community. In this article, the authors explain that newly available legal and technological means could make the burdens of the VAT system on EU businesses proportionate again. If Member States would make full use of its potential, Eurofisc could play a crucial role in the process of restoring the proportionality of the EU VAT system. If necessary, the ECJ could push Member States into the right direction.