Enhanced information exchange to combat VAT fraud in the EU

Jun 26, 2018

Political agreement was reached by EU Member States recently on new tools to close loopholes in the EU's Value Added Tax (VAT) system. These inconsistencies lead to large-scale VAT fraud causing losses of €50 billion for national budgets of EU Member States each year according to the European Commission.

The new measures provide for enhanced information exchange and cooperation between national tax authorities and law enforcement authorities. Once in force, Member States will be able to exchange more relevant information and to cooperate more closely in the fight against criminal organisations, including terrorists.

The new cooperation rules will be published in the EU's Official Journal and enter into force 20 days later. As the implementation of the automated access to the information collated by the customs authorities and to vehicle registration data will require new technological developments, their application will be deferred until 1 January 2020.