The Impact of Specific Reverse Charge on Waste and Scrap on Tax Revenues in the Czech Republic

Abstract

The paper is focused on VAT evasion and especially carousel frauds. It describes the types of VAT evasion, methods of its estimation and measures taken by the European member state to fight it. The aim of the article is to develop a reasonable method for assessing the volume of carousel fraud in the Czech Republic. It uses ex-post calculation of the impact of a specific reverse-charge implemented in the Czech Republic on waste and scrap in 2011. The analysis employs trade balance data of the Czech Republic published by the Czech Statistical Office and a model of the carousel fraud to estimate the size of the carousel fraud existing prior to the implementation of the specific reverse charge in the CR. The volume of the supposed carousels in waste and scrap present in the period from 1 April 2010 to 31 March 2011 in the CR is according to the authors EUR 56 mil. (approx. CZK 1.4 bn.).

Is the Value Added Tax System Sustainable? The Case of the Czech and Slovak Republics

“…For the explanation of the term "missing trader", see Section 2 and Figure 1. Such findings were also made by Čejková and Zídková [45]. This may also be the explanation why in 2013, the total copper import to Slovakia was smaller than that from the Czech Republic.…”

“…Cejková and Zídková [45] made another research focused generally on the impact that the introduction of the RCM for waste and scrap had had on the tax revenues in the Czech Republic. They discovered that after the implementation of the measure against the VAT carousel frauds, the trade between the Czech Republic and other EU countries had decreased, especially the intracommunity supplies.…”

“…An extreme gap came out of the study by Cuceu and Vaidean [36] who emphasized that Romania's VAT gap, expressed as a share of the VAT Total Tax Liability (VTTL), was 42% in 2011, the highest among the EU countries. Čejková and Zídková [45] made another research focused generally on the impact that the introduction of the RCM for waste and scrap had had on the tax revenues in the Czech Republic. They discovered that after the implementation of the measure against the VAT carousel frauds, the trade between the Czech Republic and other EU countries had decreased, especially the intracommunity supplies.…”

Kajian Reverse Charge Mechanism Pajak Pertambahan Nilai Bagi Wajib Pajak Badan: Proposal Untuk Indonesia

“…Reverse charge mechanism (untuk selanjutnya RCM) hadir sebagai salah satu alternatif dalam mengatasi penghindaran PPN yang dilakukan oleh konsumen. RCM merupakan mekanisme di mana pembeli membayar kepada pemasoknya untuk barang atau jasa dengan harga tidak termasuk PPN, kemudian pembeli menyetorkan pajaknya ke kas negara (Čejková & Zídková, 2019). Pemberlakuan RCM ini dapat menjadi alternatif dengan mempertimbangkan bahwa beberapa negara di dunia telah menerapkan hal ini dalam kebijakan PPN-nya.…”

“…Gambar 5 Jumlah WP Badan Terdaftar di Indonesia Kemudian penelitian berikutnya dilakukan oleh de la feria (2019) yang membahas terkait sejarah dari pemberlakuan reverse charge mechanism pada komoditas tertentu di Uni Eropa yang menjadi salah satu solusi untuk mengatasi VAT Fraud yang terjadi di negara-negara tersebut. Sejalan dengan itu, Čejková & Zídková (2019) juga meneliti terkait dampak dari pemberlakuan reverse charge mechanism pada transaksi yang melibatkan limbah dan skrap terhadap penerimaan di Republik Ceko. Kedua penelitian ini memiliki fokus studi yang berbeda dengan penelitian dalam tulisan ini karena kedua penelitian tersebut berfokus pada sejarah dari pemberlakuan reverse charge mechanism pada komoditas tertentu di Uni Eropa dan dampak dari pemberlakuan reverse charge mechanism pada transaksi yang melibatkan limbah dan skrap terhadap penerimaan di Republik Ceko.…”