Dear Customer, we would like to turn your special attention to the VAT scam dealings in the steel industry.

According to various calculations the national budget loss of Poland for not discharging tax is estimated at several hundred million per year. Beside fiscal department loss, suffer also privately owned businesses and citizens, who are deprived of the functioning on the market in accordance with the regulations.

The budget loss are estimated to a few hundred million PLN of VAT and additionally CIT and PIT (not to be estimated) is probably not a small fraud.

The available media data says that this dealing takes international scale. In 2011 from tiny Latvia  to Poland drove 299 thousand tonnes of construction re-bars. Such data are presented by Eurostat, which is based on the Latvian statistics of inside community sale reports. While to Poland from Latvia came only 4.9 thousand tonnes, according to the Eurostat data. Similarly, large inaccuracies was recorded in bars trade between Poland and Czech Republic. The Czechs declare, that last year they sold to Poland 141.7 thousand tonnes of bars. The Poles claim that arrived only 3.4 thousand tonnes. Polish Erostat data indicate, that to Czech Republic went 303.3 thousand tonnes of bars, while the Czechs have reported purchase inside community (import) of 144.2 thousand tonnes.

For a long time now many organizations, manufacturers and distributors ware appealing for changes in Polish law, which would prevent such dealings (for example: solution with reverse VAT charging in scrap trade). Those appeals affected only legal companies, because they were more controlled and the problem is not solved still. The point is that, all small and large distributors, and producers can not act in accordance with the law. It is impossible to compete with companies, which sells goods purchased from another importing companies whitout discharging any taxes.

We should all pay our attention to the risks associated with involuntary participation in transactions where steel products come from taxes fraud. Important thing is to verify the contractor (compare the offer with market prices). In case when prices are too low relative to market prices, in particular if the contractor offers are below the price of the manufacturer, we can be charged of knowingly participation in tax fraud. Super opportunity can cause serious fiscal and penalty problems.