Penalties/deposits in case of non-payment are subject to VAT
Here are the fines/penalties you get if you don't comply with the provisions of VAT:
1 ° in the case of transactions without VAT registration where VAT registration is required, fifty percent (50%) of the VAT is payable as long as it is carried out without VAT registration;
2 ° in the event of the issuance of an incorrect invoice resulting in the payment of VAT or the increase of the VAT credit or in the event of failure to issue an invoice, one hundred percent (100) %) of the VAT amount on the invoice or on the goods;
3 ° for issuing a VAT invoice to a person who is not registered for VAT is assessed a penalty of one percent (100%) of the VAT shown in that invoice and must pay the VAT as shown on that VAT Invoice”.
A taxpayer who commits fraud is fined one hundred percent (100%) of the tax owed. In addition to the penalty, the Tax Administration sends a file to the Prosecutor (Prosecution) if the taxpayer voluntarily avoids the tax, such as using bank accounts, forging documents or any other act punishable by law. If convicted, the taxpayer may be imprisoned for between six (6) months and two (2) years.
There is a decree of the Minister that determines the reward given to any person who condemns a taxpayer who engages in tax fraud.