Following a meeting with his peers from the four countries, Varga said that they all face the same concerns of carousel fraud and missing trader fraud used to bypass VAT payments. In Hungary, carousel fraud is estimated to rob the state of anywhere between €1.5-2 bln, he added.
The aim of the meeting was to coordinate the joint implantation of reverse VAT – the practice of obligating the buyer and not the seller, of goods to pay VAT – to certain groups of products, he said. Coordinating the use of reverse VAT in Central Europe would make the crackdown on VAT fraud far more efficient, he added. Other countries are also expected to join the initiative.
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