ProcessChain Workshop at the 2nd ForDigital Blockchain Workshop in Karlsruhe

 

(picture by Oliver Stengele, KIT)

Philip Hake and Filip Fatz propose an application of the blockchain technology on the 2nd ForDigital Blockchain Workshop in Karlsruhe. They argue that the European Union member states collect about 1 Trillion value added tax revenues a year. However, a study of the European Commission revealed theoretical vat liabilities in the amount of 1.187 Trillion €. This results in a VAT gap of about 150 billion € across all member states. According to Europol, 60 billion € of this gap are caused by missing trader intra-community (MTIC) fraud. MTIC fraud takes advantage of the tax authorities’ loss of information caused by cross-border trading. To avoid this loss of information and enhance the European VAT Information Exchange System (VIES), we propose an application of the blockchain technology. We aim to provide a solution, which hinders fraud and at the same time reduces audit efforts of companies and authorities.

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