Brussels. The Council of the European Union has provisionally agreed on new measures to strengthen action against cross-border VAT fraud by giving EU investigative bodies wider access to tax data. The framework will allow the European Public Prosecutor’s Office and the European Anti-Fraud Office to access key VAT-related information, including data from Eurofisc, the bloc’s anti-fraud intelligence network.
Cross-Border VAT Fraud Under Focus
The reform targets cross-border VAT fraud, including missing trader intra-community fraud, commonly known as carousel fraud. According to estimates cited by the European Commission, such schemes cause annual losses ranging between €12.5 billion and €32.8 billion to EU member states and the EU budget.
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Officials said the new framework is designed to close gaps in information-sharing between national tax administrations and EU-level investigative bodies. Faster access to data is expected to help investigators identify suspicious patterns earlier and respond more effectively to complex fraud cases.
EPPO and OLAF to Get First-Hand Tax Data
Under the proposed framework, EPPO and OLAF will receive more direct and structured access to VAT information on cross-border commercial transactions. This includes data held within Eurofisc, which supports cooperation among member states in detecting VAT fraud.
The Council said the move would provide investigators with first-hand information needed to initiate and support probes into suspected VAT fraud. Authorities believe this will improve coordination across jurisdictions, particularly in cases involving shell companies, layered transactions and organised crime networks.
Formal Adoption to Follow Parliament Opinion
The legislative update will amend Council Regulation 904/2010, which governs administrative cooperation and VAT fraud prevention within the European Union. It also builds on earlier reforms aimed at digitising VAT reporting obligations for businesses involved in cross-border trade.
The European Parliament is expected to issue its opinion in July 2026, after which the Council will proceed with formal adoption. The regulation will enter into force 20 days after publication in the Official Journal of the European Union.
EU authorities said the reform is expected to protect public revenues, improve enforcement and create a fairer environment for legitimate businesses affected by fraudulent operators.
