The Council of the EU has agreed new rules aimed at strengthening the fight against VAT fraud across the bloc, by increasing cooperation between member states, the European Public Prosecutor’s Office and the European Anti-Fraud Office.
The agreement, reached under the Cyprus Presidency of the Council of the EU, is intended to give EU investigative bodies faster access to information needed to detect and pursue suspected cross-border VAT fraud.
Direct access to VAT data
The new framework will give EPPO and OLAF more direct access to key VAT data on cross-border business transactions in the EU, including information held by Eurofisc, the EU’s anti-VAT fraud network.
According to the Council, the framework means EPPO and OLAF will have first-hand information needed to launch and support investigations, within their respective mandates, into suspected cross-border VAT fraud.
Cyprus Finance Minister Makis Keravnos said the agreement would give EU investigative bodies the tools they need to act more quickly against criminal activity and protect public revenues.
“We have taken massive strides in tackling VAT fraud over recent years. But our budgets still lose out to the tune of billions of euros every year and authorities need the right tools to tackle these criminal activities more quickly,” Keravnos said.
“Today’s agreement will give EU investigative bodies the targeted information they need to pursue criminals swiftly and to protect national and EU revenues that benefit us all,” he added.
Billions lost each year
Cross-border VAT fraud, particularly missing trader intra-community fraud, also known as carousel fraud, remains a major problem for the EU.
According to the European Commission, it costs member state treasuries and the EU budget between €12.5 billion and €32.8 billion each year, often involving organised crime groups.
The Council said the new rules are expected to improve coordination between authorities, speed up investigations and strengthen the EU’s overall capacity to detect and combat VAT fraud affecting the Union’s financial interests. They are also intended to help create fairer conditions for legitimate businesses operating across the single market.
Next steps
The regulation amends Council Regulation 904/2010 on administrative cooperation and combating VAT fraud.
Once the European Parliament adopts its opinion on the file, currently expected in July 2026, the Council will proceed with formal adoption. The regulation will enter into force 20 days after its publication in the Official Journal of the EU.
Source: CNA