VAT-Related Highlights
- Purpose of the Framework: Ensures correct application of VAT rules across Member States and combats cross-border VAT fraud.
- Fraud Impact: Missing Trader Intra-Community (MTIC) fraud remains a major issue, causing estimated annual losses of €12.5–32.8 billion.
- Trade Volume: Intra-EU transactions reached €4.135 trillion in 2023, involving 6.5 million traders, making oversight complex.
- Recent Legislative Action:
- VAT in the Digital Age Package (March 2025) introduces digital reporting obligations starting in 2030 to improve fraud detection.
- Existing Measures:
- Since 2020, cross-border payment data is used to fight e-commerce VAT fraud.
- Eurofisc network expanded in 2018 to allow joint processing of VAT data among Member States.
- Objective: Strengthen administrative cooperation without imposing excessive burdens on businesses, while safeguarding EU financial interests.
Source data.consilium.europa.eu
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