EU moves to reinforce cooperation against VAT fraud
A new real-time VAT reporting aims to expose carousel schemes more quickly, improving cooperation between EU agencies and strengthening efforts to protect the Union’s financial interests.
The European Commission has presented a plan to strengthen cooperation among the European Public Prosecutor’s Office, the European Anti-Fraud Office, and member states as part of a broader effort to combat VAT fraud.
The proposal establishes a legal framework for the sharing of information. It grants the EU bodies immediate access to VAT data, which is expected to enhance the detection of cross-border tax evasion schemes.
Real-time reporting of cross-border trade, delivered through the VAT in the Digital Age package, provides national authorities with the information needed to identify suspicious activity, rather than relying on delayed or incomplete records.
Carousel fraud alone costs EU taxpayers billions each year and remains a significant element of the broader VAT compliance gap, which stood at over €89 billion in 2022.
The Commission argues that faster access to VAT information will help investigators uncover fraudulent networks, halt their activities and pursue prosecutions more effectively.
EPPO, OLAF and the Eurofisc network would gain direct communication channels, enabling closer coordination and rapid intelligence sharing throughout the Union.
A proposal that will now move to the Council for agreement and to the European Parliament and the Economic and Social Committee for consultation.
Once adopted and published, the changes will take effect and initiate the implementation phase across the EU.
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