Estonia: Amount of VAT violations doubled on year in M7/2023

The amount of VAT violations in Estonia doubled in the first seven months of 2023, according to the Estonian Tax and Customs Board (EMTA), BNS reports. EMTA inspected and advised 5,000 companies over the period, resulting in increased VAT obligations of EUR 35.8mn, which is twice as much as a year earlier and EUR 6mn more than in the full year 2022. Most errors were detected in VAT refund claims. The most common forms of tax evasion were payment of cash wages, hiding turnover, and using fictitious purchase invoices. In 2023, EMTA is focusing on violations related to real estate transactions. In the beginning of 2023, EMTA detected nearly 20,000 entrepreneurs whose declared data showed potential VAT risks.