Investigation ongoing but reports suggest multi-million euro VAT fraud – How the carousel works
Circuit 16 Greek companies, of which it is a part international circuit trading telecommunications products and electronic equipment, was caught in the nets of AADE with the charge of VAT theft. To cover their action they carried out the transactions through successive sales in the form of a “carousel” circuit.
The investigation is ongoing, but reports indicate fraud with a VAT loss of several million euros.
At the same time, in the telecommunications sector, the following were caught in the nets of AADE:
- 3 companies, which did not transmit to AADE 1,900 tax details, totaling 18,000 euros
- 4 companies, which did not issue 2,004 tax data, totaling 393,000 euros
- 6 businesses, which carried out virtual transactions (issuing or receiving virtual tax information), with a total value of 36,000,000 euros.
In all these cases, so far, they have been attributed fines totaling 5.7 million euros, while five of these businesses have been “locked”.
How the circuit works
With the “carousel” method, the goods that are to be sold on the Greek market make a circle between various companies within the EU and at some point the company that should have paid VAT to the State, while not even paying income tax, “disappears”. nor insurance contributions.
Thus, they transfer products from one company to another, the bank accounts of the first company are credited with the price, but the VAT is never paid, which ends up in the circuit.
Source: Skai
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