VAT Fraud

VAT fraud is illegal activity where individuals or companies intentionally manipulate or avoid paying the value-added tax (VAT) owed to the government. This can involve techniques like creating fake companies, falsifying transactions, or claiming refunds on VAT that wasn’t paid. The goal is to reduce tax liability or illegally reclaim VAT, causing significant revenue loss for governments. VAT fraud undermines fair tax collection, distorts markets, and can fund other illegal activities. Authorities continuously work to detect and prevent such fraud through audits, regulations, and international cooperation.