European Commission proposes new laws to combat VAT fraud

Dec 04, 2017

The European Commission published proposals which aim to make the EU's Value Added Tax (VAT) system more fraud-proof and close loopholes which can lead to large-scale VAT fraud.

The proposed rules focus on how Member States exchange information.  The key measures include:

  • An online system for information sharing within 'Eurofisc', the EU's existing network of anti-fraud experts.  The system would enable Member States to process, analyse and audit data on cross-border activity to make sure that risk can be assessed quickly and accurately. New powers would also be given to Eurofisc to coordinate cross-border investigations.
  • The new lines of communication and data exchange between tax authorities and European law enforcement bodies on cross-border activities suspected of leading to VAT fraud. 
  • Sharing of key information on imports from outside the EU and information sharing on car registrations across the EU.

These legislative proposals will now be submitted to the European Parliament for consultation and to the Council for adoption.