This paper presents one of the first attempts to integrate tax law and accounting in tax evasion context. Today, tax and tax evasion are often interpreted as law phenomenons, although tax frauds are realized through bookkeeping procedures. Special accent is put on value added tax (VAT), whose complex regulation can be treated as important circumstance under which taxpayers perform tax evasion. In countries with more VAT rates, lower rate choice can be source of tax evasion. Wrong choice of lower VAT rate is often considered as a consequence of complex tax regulation. Accent is also put on retail area (that is analysed via case study), as one of the most vulnerable area to VAT evasion.