This article focuses on the carousel of VAT fraud consisting in multiple undue VAT rebates for goods exported and re-exported between EU countries. This fraud has been developed as a form of border VAT adjustment since the abolition of the borders within the EU countries. The carousel is...

The EU market’s free circulation principle severs the VAT chain at the EU States’ borders, thus, enticing VAT frauds. The increased “transit traffic†from outside EU with final destination in EU also contribute to VAT fraud. To examine this issue, we model some different...