The EU Council advances the reform of data exchange to combat cross-border VAT fraud.

The EU Council has agreed on the position of the member states regarding a proposal to amend the European rules on administrative cooperation in the field of VAT, to allow EPPO and OLAF to access relevant data more quickly in investigations concerning cross-border tax fraud.

In short The EU Council has agreed on the position of the member states regarding the proposal to strengthen the exchange of VAT data between national tax authorities, EPPO, OLAF, and Eurofisc.

The Commission's proposal from November 2025 aims to amend Regulation (EU) No. 904/2010 on administrative cooperation and combating fraud in the field of VAT.

The Eurofisc network would transmit to EPPO and OLAF risk analyses regarding VAT fraud under certain conditions.

EPPO and OLAF would receive direct and timely access to VAT information from member states, under strict conditions and in compliance with data protection rules.

The European Parliament is preparing its opinion, and the European Economic and Social Committee has already supported the proposal.

The agreement in the Council represents a step in the procedure for adopting the reform, but does not mean the final adoption of the act. The member states gathered in the ECOFIN Council have supported the objectives and approach of the Commission's proposal, with some clarifications.

The proposal aims to reduce delays in accessing information for investigations into cross-border VAT fraud. Until now, EPPO and OLAF's access to this data was complex and depended on repeated bilateral exchanges with member states, which could slow down investigations.

The Commission shows that fraudsters operating cross-border exploit weaknesses in the tax system to avoid paying VAT. In some cases, they charge VAT from consumers but do not transfer the amount to the state.

The European Public Prosecutor's Office and the European Anti-Fraud Office are involved in investigations concerning cross-border fraud. The Eurofisc network, made up of experts from member states in VAT fraud, exchanges and analyzes data to identify cases of fraud.

Through the proposed reform, Eurofisc would be able to send its own risk analyses related to VAT fraud to EPPO and OLAF under certain circumstances. EPPO and OLAF would obtain direct and timely access to VAT information from member states, under strict conditions and in compliance with data protection rules.

The European Economic and Social Committee supports the Commission's proposal and considers it necessary for the competent authorities to be able to quickly collect, use, and correlate relevant VAT information from multiple member states. The EESC states that this can reduce delays in the response of tax authorities to fraudulent activities.

The EESC notes that the proposal does not introduce new reporting obligations or additional compliance costs for citizens or companies. According to its opinion, the reform is limited to VAT information already exchanged under Regulation (EU) No. 904/2010.

The Committee, however, warns that access to and processing of VAT data must comply with applicable legislation and the principle of data minimization. In this case, both the General Data Protection Regulation and the data protection rules for EU institutions and the specific regime under the EPPO Regulation apply.

Cross-border VAT fraud results in significant losses for the budgets of member states. One of the most serious types is carousel fraud, in which fraudulent networks use complex chains of companies and transactions to exploit the fact that intra-EU transactions between companies are not taxed with VAT, while domestic transactions are taxed.

According to the Commission, carousel fraud costs member states and the EU up to 32.8 billion euros in lost revenue annually. The EESC mentions estimates that Missing Trader Intra-Community fraud results in annual losses between 12.5 billion and 32.8 billion euros, while only 2.5 billion euros of this deficit are detected annually through Eurofisc.

Another mentioned scheme exploits Customs Procedure 42. In this scheme, goods are imported without paying VAT, falsely claiming that they will be sold in another member state, after which they remain untaxed in the importing state or are sold elsewhere without paying VAT.

The Commission mentions recent investigations by EPPO and OLAF, including the discovery of a carousel fraud of 500 million euros in the IT sector and a customs and VAT fraud scheme related to imports of textiles, footwear, electric bicycles, and other goods. In that case, approximately 118 million euros in customs duties and 79 million euros in VAT were evaded.

The European executive supports that faster cooperation and better access to data can help EPPO and OLAF successfully conclude more investigations. The measure is also presented as a tool for protecting fair competition in the internal market, as companies that comply with the rules are disadvantaged by fraudulent operators.

The Commission's proposal was presented in November 2025 and aims to amend Regulation (EU) No. 904/2010, which regulates administrative cooperation and combating fraud in the field of VAT.

The legal basis for the file is Articles 113 and 304 of the Treaty on the Functioning of the European Union, according to the EESC's opinion. The European Economic and Social Committee adopted the opinion on February 18, 2026, with 201 votes in favor, no votes against, and one abstention.

The European Parliament is preparing its opinion on the proposal. After completing the relevant consultative stages and institutional negotiations, the reform could change the way EPPO, OLAF, national tax authorities, and Eurofisc cooperate in investigating cross-border VAT fraud.

https://2eu.brussels/ro/stiri/consiliul-ue-avanseaza-reforma-schimbului-de-date-pentru-combaterea-fraudei-transfrontaliere-de-tva