In a complicated mechanism of fraud, it is not only the state and large sums of money that become victims; smaller businesses are also often affected by the extensive scale of fraud. It is therefore worth knowing what VAT mafias and tax carousels are and how they operate.
Although it is generally accepted that all kinds of financial fraud can involve almost any goods, some groups are particularly popular. These certainly include the electronics industry (especially mobile phones, drives and consoles), the fuel industry, precious and non-ferrous metals, the food industry (with particular emphasis on coffee, tea and sweets), the chemical industry (mainly perfumes and cosmetics), as well as the intangible services sector. This is where VAT mafias operate.
How Do VAT Mafias Operate?
Tax and VAT fraud most often involves a very simple modus operandi. A new company appears in the relevant market, importing goods into Poland and selling them to a Polish customer. Despite issuing a sales invoice, the tax is not paid. When an inspection finally takes place, the company has long since ceased to exist, or its owners are foreigners or people without valid legal documents. As a result, there is no effective way to collect the tax owed.
How else can this operate? A Polish purchaser of goods imported from abroad is often called a buffer. A broker, in turn, is a person who buys from the buffer and sells the goods abroad at a zero VAT rate. After the tax year ends, the broker files a declaration claiming a VAT overpayment and thus receives a refund... Read more on the blog lista-firm/na-czym-polega-karuzela-podatkowa-mafia-vat.