VAT fraud: EU proposes a real-time cooperation mechanism between authorities

The European Commission has initiated a new framework that allows for the real-time exchange of VAT data between EPPO, OLAF, and member states, with the aim of more effectively combating carousel fraud, which generates annual losses of up to 33 billion euros for the EU. This measure will accelerate investigations and strengthen cross-border cooperation, providing a legal basis for access to essential information.

By introducing digital reporting of cross-border trade, member states will benefit from valuable information to intensify the fight against VAT fraud, especially carousel fraud within the community, which costs taxpayers between 12.5 billion and 32.8 billion euros annually. The proposal improves EPPO and OLAF's access to VAT data, facilitating the rapid assessment of investigations. It also establishes direct communication channels between these agencies and Eurofisc, enhancing the coordination of investigations and the exchange of critical information. Commissioner Wopke Hoekstra emphasized the importance of this proposal for protecting the financial interests of the EU and ensuring a fair business environment.