EU Proposes Stronger Cooperation Among Eurofisc, EPPO, and OLAF to Tackle Cross-Border VAT Fraud
- The European Commission has proposed an amendment to enhance cooperation between the European Public Prosecutor’s Office (EPPO), the European Anti-Fraud Office (OLAF), and Member States, facilitating the exchange of information and access to VAT data to combat fraud against the EU’s financial interests.
- The introduction of real-time digital reporting for cross-border trade aims to provide Member States with crucial information to address VAT fraud, particularly carousel fraud, which costs EU taxpayers an estimated €12.5 billion to €32.8 billion annually.
- The proposal aims to improve communication and coordination among EPPO, OLAF, and Eurofisc, enabling efficient cross-border investigations and rapid identification of fraudulent activities, and will undergo consultation with the Council, European Parliament, and Economic and Social Committee before implementation.
Sources:
EU Commission proposes strengthened cooperation to combat tax fraud
- On November 14, 2025, the European Commission proposed a plan to enhance cooperation between the European Public Prosecutor’s Office (EPPO), the European Anti-Fraud Office (OLAF), and Member States to combat VAT fraud, establishing a legal framework for better information sharing. This initiative aims to provide EU bodies with immediate access to VAT data, facilitating the detection of cross-border tax evasion schemes.
- The introduction of real-time reporting under the VAT in the Digital Age (VIDA) package will enable authorities to identify suspicious activities and intensify efforts against VAT fraud, notably carousel fraud, which costs EU taxpayers an estimated €12.5 billion to €32.8 billion annually. This fraud significantly contributes to the overall VAT gap, which was approximately €89.3 billion in the EU for 2022.
- The proposal also establishes direct communication channels between EPPO, OLAF, and Eurofisc, enhancing their ability to coordinate cross-border investigations and exchange vital information in real time. The plan will undergo consultation with the European Parliament and Economic and Social Committee before being submitted to the Council for agreement, leading to implementation across the EU once adopted.
Source Innovate Tax
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- The European Commission has proposed measures to enhance cooperation and data sharing among EU anti-fraud institutions in anticipation of the VAT in the Digital Age (ViDA) requirements for intra-Community e-invoicing and Digital Reporting Requirements (DRR) by 2030, aiming to combat cross-border VAT fraud.
- With estimates of annual VAT revenue losses from fraudulent intra-Community trade ranging from EUR 12.5 billion to EUR 32.8 billion, the proposal seeks to improve the detection of complex fraud schemes through increased collaboration among agencies like the European Public Prosecutor’s Office (EPPO) and the European Anti-Fraud Office (OLAF).
- The proposal will facilitate immediate VAT data access for EPPO and OLAF, enable real-time intelligence sharing through the Eurofisc network, and leverage the ViDA package to modernize fraud detection efforts, with the next step being submission to the European Parliament and Council for adoption.
Source Pagero
EU Proposes Direct VAT Data Access to Combat Fraud
- The European Commission proposed granting direct access to VAT data for three EU bodies—Eurofisc, EPPO, and OLAF—to enhance the fight against Missing Trader Intra-Community (MTIC) fraud, which costs the EU €12–33 billion annually.
- This proposal signifies a shift from traditional VAT reporting to a more proactive model characterized by structured digital reporting, real-time visibility, and consistent transaction data across Member States, aligning with the ViDA initiative.
- Businesses must adapt to these changes by prioritizing digital reporting, ensuring data governance, and standardizing processes to navigate the evolving VAT landscape effectively.
Source Hanne Van De Weyer
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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