VATTECH · New technologies in VAT reporting, collection and auditing: legal opportunities and challenges”
Horizon 2020 — Marie Skłodowska-Curie Actions
- Duration
- 2021-10-01 → 2023-12-24
- EU contribution
- €219,312
- Participants
- 1
- Scheme
- MSCA-IF
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Results in brief
New technologies in VAT reporting, collection and auditing: legal opportunities and challenges”
This project investigates the legal opportunities and challenges of the use of technology-based tools in VAT administration as means for combating VAT fraud, facilitating compliance and supporting the proper functioning of the harmonised EU VAT. The advancement of new technologies – including big data analysis and complex algorithms – has the potential to significantly reducing VAT fraud and facilitating a proper functioning of the EU VAT system. Fraud erodes budgets of states and leads to distortions of competition. It affects honest businesses and consumers and violates the very fundaments of the EU Internal Market. On the other hand, technology-based tools and their use by public administrations cause risks of infringement of taxpayers’ rights including the right to fair trial, the right to privacy and the right to property. The objective of VATTECH is to evaluate technology-based tools in the light of the EU legal framework and the protection of taxpayers’ rights. The ambition is to provide important, new insights into the EU VAT system and to contribute to the improvement of the tools to combat VAT fraud, administrative cooperation and exchange of information between and across the EU MS. The main questions addressed in the framework of VATTECH are: 1. What are the technology-based tools for combating VAT fraud and what is the best practice (in the light of their purpose, the legal framework in the EU and the protection of taxpayers’ right)? 2. What are the challenges to the taxpayers’ rights and the EU law and how can they be remedied? 3. How could the EU VAT system benefit from technology-based tools and should coordination/harmonization in that field be recommended?
Data: CORDIS, © European Union
Project objective
Billions of euros are being lost yearly by EU Member States (MS) due to fraud related to Value Added Tax (VAT) . VAT fraud erodes budgets of both MS and the EU and leads to distortions of competition. It affects honest businesses and consumers and violates the very fundaments of the Internal Market. The loss of tax revenue impedes the fulfilment of redistributive tasks of the MS and thus their role in protection of basic economic and social rights of individuals. The advancement of new technologies – including big data analysis and ever more complex algorithms – has the potential to significantly reducing VAT fraud across the EU. The overall aim of the project on “New technologies in VAT reporting, collection and auditing: legal opportunities and challenges” (VATTECH) is to investigate – from a legal perspective - the opportunities and challenges in the use of new technologies in reporting, collection and auditing of VAT. I will do this by:a)Mapping the new technologies used within the VAT area, identify the most efficient ones along with the legal base and background related to these technologies;b)Evaluating the identified technologies based on functionality and consistency with taxpayer’s rights, and the existing EU’s legal framework;c)Based on a) and b), assessing the potential (functional as well as legal) for extension and harmonization of the evaluated technologies to the whole of EU.My ambition is to provide important, new insights into the EU VAT system, and through that, to make a significant contribution to the improvement of the tools to combat VAT fraud, administrative cooperation and exchange of information on VAT between and across EU MS.
Original text from CORDIS.
Participants
- KOBENHAVNS UNIVERSITET · KOBENHAVNCoordinatorDenmark
Links
Data: CORDIS, © European Union