The fiscal authorities are increasing their focus on VAT fraud by means of an information leaflet setting out 40 warning signs which is being distributed to selected en-trepreneurs. In this information leaflet, the fiscal authori-ties have listed numerous circumstances which they consider to be suspicious as regards fraudulent VAT activities and which entrepreneurs have to take into consideration when initiating business transactions. According to the fiscal authorities, if these warning signals are ignored this might suggest involvement in fraudulent VAT activities and lead to the refusal of VAT deduction or tax exemption of intra-Community supplies.