VAT fraud in the food industry

12.1.2016

Question for written answer E-000145-16
to the Commission
Rule 130
Jeppe Kofod (S&D)

New figures from the Danish Veterinary and Food Administration show that there has been a significant increase in the number of cases of fraud in the food industry. Sweets, soft drinks and other foods that are easily sold on are often bought in one Member State and sold via a front company to a company in another Member State, without paying the VAT that is due. The front company then files for bankruptcy, meaning that the tax authorities are unable to recover the VAT owed. The Danish broadcaster DR has reported that as a result of this practice, the Danish Government is losing out on hundreds of millions of kroner a year. With that in mind:

• 1.What practical action has the Commission taken to help Member States crack down on criminal behaviour of this kind?
• 2.Will the Commission be addressing this issue in its forthcoming VAT and fraud package?
• 3.Will the Commission take action in line with the European Parliament resolution adopted on the basis of the final report of the TAXE-1 Committee, which called for stricter checks, more openness and harsher penalties for tax and VAT fraud, including, as a last resort, barring those who systematically and repeatedly commit tax fraud from running a business anywhere in the EU?