The importance of international tax information exchange in preventing VAT fraud

Abstract

In my thesis, I wanted to provide a relatively brief but comprehensive picture of how international tax information exchange contributes to the prevention of tax fraud. The main benefit of automatic exchange of information is that tax authorities receive useful information that helps them fight cross-border tax fraud, tax evasion and tax avoidance. Another advantage of automatic exchange of information is that it has a deterrent effect on taxpayers, encouraging them to fulfill their tax obligations even more carefully. In general, the key issue when using data will be that the data received is reliable and can be used automatically, without further human intervention. In practice, this represents the biggest challenge in the efficient operation and effectiveness of automatic tax information exchange.