EU Council Advances Proposal to Grant EPPO and OLAF Access to VAT Data Across Member States

Summary

The EU Council is progressing a proposal to amend Regulation (EU) No 904/2010 to allow direct access to VAT information at EU level for the European Public Prosecutor’s Office (EPPO) and OLAF. [data.consi….europa.eu]
The objective is to strengthen administrative cooperation and combat VAT fraud, including improved data exchange between Member States and EU bodies. [data.consi….europa.eu]
Member States are discussing safeguards, data access conditions, and roles of Eurofisc, EPPO, and OLAF, with a general approach under development. [data.consi….europa.eu]

Article

Background and legislative context

On 30 April 2026, the General Secretariat of the Council issued document ST‑8538‑2026‑INIT, reflecting progress on a proposal to amend Regulation (EU) No 904/2010, which governs administrative cooperation in the VAT field. [data.consi….europa.eu]

The European Commission originally submitted this proposal on 14 November 2025, with the aim of strengthening the EU framework for combating VAT fraud. [data.consi….europa.eu]

The proposal forms part of the broader effort to enhance cooperation between Member States and EU-level bodies, particularly in the context of increasingly complex cross-border VAT fraud schemes.

Core objective: access to VAT data for EU enforcement bodies

The central element of the proposal is to provide a legal basis for the European Public Prosecutor’s Office (EPPO) and the European Anti-Fraud Office (OLAF) to access VAT information at EU level. [data.consi….europa.eu]

Specifically, the amendment aims to:

Enable exchange and access to VAT data collected within the EU framework
Improve coordination between national tax administrations and EU investigative bodies
Enhance the EU’s capability to detect and combat VAT fraud more effectively [data.consi….europa.eu]

This reflects a broader policy trend toward greater data sharing and centralised analysis in the fight against tax fraud.

Legislative process and discussions

The proposal has been actively discussed within the Council’s Working Party on Tax Questions (Indirect Taxation – VAT). [data.consi….europa.eu]

Key milestones include:

Initial presentation on 16 January 2026, followed by detailed article-by-article discussions [data.consi….europa.eu]
Engagement with EPPO and OLAF representatives, who provided additional context on operational needs [data.consi….europa.eu]
Consideration of the European Data Protection Supervisor (EDPS) opinion, particularly regarding data protection implications [data.consi….europa.eu]

In parallel, the Council Presidency circulated compromise texts to address Member State concerns.

Key technical issues under negotiation

Discussions among Member States have focused on several critical aspects of the proposal:

4.1 Safeguards for data access

Additional safeguards are being developed to ensure that access to VAT data complies with data protection principles, in line with EDPS recommendations. [data.consi….europa.eu]

4.2 Scope of application

Clarifications are being made regarding:

The application of the rules to Member States not participating in the EPPO
The interaction between EU-level bodies and national authorities [data.consi….europa.eu]

4.3 Role of Eurofisc, EPPO, and OLAF

The proposal further defines the responsibilities of:

Eurofisc, as the network for VAT fraud cooperation
EPPO, for criminal investigations
OLAF, for administrative investigations [data.consi….europa.eu]

It also specifies the purposes for which OLAF may use VAT data, ensuring alignment with its mandate.

4.4 Standardised reporting formats

The introduction of standard forms for transmitting Eurofisc analysis reports is being considered to facilitate efficient data exchange. [data.consi….europa.eu]

Current status and next steps

As reflected in the document, the Council is working towards a“general approach”, indicating political agreement among Member States on the main elements of the proposal. [data.consi….europa.eu]

The work of the Presidency on compromise texts has been broadly welcomed by delegations, suggesting convergence on key issues. [data.consi….europa.eu]

The legislative process is ongoing, with:

The European Economic and Social Committee having already delivered its opinion (18 February 2026) [data.consi….europa.eu]
The European Parliament’s opinion still pending [data.consi….europa.eu]

Implications for VAT compliance and enforcement

While the proposal is primarily focused on administrative cooperation and fraud enforcement, it reflects a broader shift in EU VAT policy toward:

Enhanced data sharing across borders
Increased use of real-time or near-real-time VAT information
Stronger integration between tax administrations and enforcement bodies

For businesses, this trend signals continued movement toward greater transparency and auditability of VAT data, even though the current proposal does not directly introduce new compliance obligations.

Conclusion

The Council’s work on document ST‑8538‑2026‑INIT represents a significant step toward strengthening the EU’s anti-fraud framework by enabling direct access to VAT data by EPPO and OLAF.

By reinforcing cooperation between Member States and EU institutions, the proposal aims to close gaps in the detection and prosecution of VAT fraud, while balancing data protection safeguards and institutional responsibilities.

Source Data.consilium.europa.eu