In December 2024, the European Public Prosecutor's Office (EPPO) uncovered an astonishing large - scale VAT fraud case. The extensive scope and huge amount involved in the case immediately caused a great stir in the global business community. This case involved as many as 400 enterprises, with an amount involved as high as 297 million euros, which is approximately 2.26 billion yuan in RMB.
In this elaborately planned criminal activity, criminals skillfully laid out and set up companies in 15 EU member states respectively. They targeted the popular field of cross - border trade in electronic products and took advantage of the loopholes in the complex EU tax rules to carefully design means to evade the payment of sales value - added tax. In the goods sales link, they concealed the actual sales volume through operations such as false accounting and false declarations, thereby reducing the sales value - added tax payable. What's more, after completing the sales, they brazenly applied for tax refunds and quickly transferred the defrauded tax funds to offshore accounts in an attempt to evade supervision.
The exposure of this case, like a heavy hammer, has severely sounded the alarm for the tax compliance of global enterprises in the European market. The EU has always adhered to an extremely strict attitude towards value - added tax management. For enterprises conducting business in the EU, legally applying for and correctly using a VAT tax number is the basis for carrying out business activities. Enterprises must submit accurate information to the relevant tax authorities in accordance with the prescribed procedures to apply for their own VAT tax number and use it in a standardized manner in daily operations. They are not allowed to lend, misappropriate or operate it in violation of regulations.
Timely declaration and payment of sales value - added tax is also an inescapable responsibility of enterprises. Enterprises need to strictly follow the EU - specified declaration cycle, truthfully fill in sales data, and pay the corresponding tax in full. Any attempt to evade tax obligations by under - reporting sales volume, falsely reporting sales items, etc. will be accurately captured by the tax system. In the import link, enterprises also need to be extremely cautious when operating import value - added tax. From the declaration when goods enter the customs to the subsequent deduction process, everything must comply with the regulations. The slightest mistake may trigger tax risks.
Numerous enterprises have learned profound lessons from this case. A Chinese electronics export enterprise that was steadily expanding its business in the European market originally had its goods clearance blocked and its capital flow affected during the case investigation period due to some business dealings with the enterprises involved in the case. This led to delays in order delivery and damage to its reputation. To avoid similar situations, enterprises have strengthened the construction of their internal tax management teams, introduced professional tax software, and regularly carried out self - inspections to ensure that every tax operation in the European market is legal and compliant, strictly abide by the bottom line of tax compliance, and maintain the stable development of enterprises in the international market.
