The EU proposes strengthening cooperation between EPPO, OLAF, and member states to combat VAT fraud.
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Brussels, November 14, 2025 – The European Commission has presented a legislative proposal aimed at strengthening cooperation between the European Public Prosecutor's Office (EPPO), the European Anti-Fraud Office (OLAF), and the member states, through a new legal framework that will allow for the direct exchange of information and immediate access to VAT data. The measure aims to enhance the Union's ability to detect and combat fraud affecting the financial interests of the EU, particularly cross-border carousel fraud.
Carousel fraud, also known as MTIC fraud (Missing Trader Intra-Community), represents one of the most costly forms of VAT fraud at the European level. According to the Commission, this type of fraud causes annual losses estimated between 12.5 and 32.8 billion euros and is often coordinated by criminal organizations. This amount constitutes only a part of the total VAT collection gap, which was estimated at 89.3 billion euros in 2022 for the entire Union.
The Commission's proposal is correlated with the "VAT in the Digital Age" (ViDA) initiative, which introduces real-time digital reporting of cross-border transactions. With immediate access to relevant data, EPPO and OLAF will be able to more quickly identify suspicious patterns, act promptly, and trigger coordinated investigations in multiple member states. The Commission emphasizes that complete and up-to-date access to VAT data will allow for more effective identification, prevention, and prosecution of fraudulent activities.
A central element of the proposal consists of establishing direct and efficient communication channels between EPPO, OLAF, and Eurofisc – the European network of tax experts from member states specialized in combating VAT fraud. This mechanism aims to facilitate the real-time exchange of critical information and improve the coordination of cross-border investigations. The new cooperation tools will allow for leveraging existing and emerging digital solutions for the secure exchange of tax information.
"Combating VAT fraud is a priority for me and for the Commission… With digital tools and better cooperation in terms of information, we are building a stronger and fairer tax system for everyone,"
said European Commissioner Wopke Hoekstra, emphasizing the need for firm action at the Union level.
The proposal will be sent to the Council of the European Union for agreement and to the European Parliament and the European Economic and Social Committee for consultation. The new rules will come into force after the co-legislators reach an agreement on the text and it is published in the Official Journal of the European Union.
