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A technological solution for the 50 billion EUR VAT fraud problem

Project description

A new solution for VAT fraud

EU Member States are losing billions of euros in tax revenues. The EU-funded TXpp project has a solution to reverse this revenue shortfall. Specifically, it proposes a single source of truth for invoices. For instance, tax Authorities will use the project’s innovative Blockchain protocol to let companies register invoices for value-added tax (VAT) purposes. Not only will billions of euros in VAT be accounted for, but this will also result in the creation of the world’s biggest verified invoice registration network. The database will guarantee the privacy of citizens and return stolen VAT fraud to the national treasuries. It will also be able to identify fraudulent companies and make the factoring industry more efficient.

Objective

Tax Authorities and factoring agencies in the EU are the victim of billions of Euros in invoicing fraud every year, and there has not yet been any good solution in sight. Until now. There were many attempts to solve the problem but none achieved consensus amongst all EU Member States. This tremendous societal problem is back in the focus of Member States and the European Commission. We solve this problem once and for all by creating a single source of truth for invoices. Tax Authorities will use our innovative blockchain protocol to let companies register invoices for VAT purposes. We will not only safeguard billions of Euros in VAT, but we will also create the biggest verified invoice registration network in the world. We were honoured to present our findings at the EU blockchain forum to members from DG HOME, AGRI, JUST and DIGIT (https://youtu.be/hPQXkQs7njg?t=3370). More importantly, DG-TAXUD also invited us to present for a select group of VAT experts. Our model is easily scalable within the EU due to the harmonized VAT law and the fact that VAT fraud prevention works the same in different Member States. This data can be used for more than just VAT registrations: we will give companies of all sizes access to commercial applications like factoring. In contrast to existing ideas to tackle VAT fraud, our solution offers privacy-by-design, it provides benefits to companies, and it can be implemented country-by-country. All reasons why we already 1) secured a cooperation with a Ministry to run a pilot 2) secured funding for our operations in the Netherlands. For both stakeholders we appended their letters of intent. As we ensure every single invoice can be used for various business processes, we do not only innovate, but disrupt markets. Both the increase in government revenues because of the enormous reduction in VAT fraud and the increase in efficiency of business processes will increase economic growth and create jobs throughout the EU.

Call for proposal

H2020-EIC-SMEInst-2018-2020

See other projects for this call

Sub call

H2020-SMEInst-2018-2020-1

Coordinator

SUMMITTO BV
Net EU contribution
€ 50 000,00
Address
JOHN M. KEYNESPLEIN 12
1066 EP AMSTERDAM
Netherlands

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SME

The organization defined itself as SME (small and medium-sized enterprise) at the time the Grant Agreement was signed.

Yes
Region
West-Nederland Noord-Holland Groot-Amsterdam
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
Links
Total cost
€ 71 429,00