The EU has taken a significant step towards combating cross-border tax fraud. The Council of the EU has agreed to strengthen cooperation and data sharing between national tax authorities, the European Public Prosecutor’s Office (EPPO), the European Anti-Fraud Office (OLAF), and the Eurofisc network of Member State anti-fraud experts. This will help reduce the VAT gap, currently estimated at 128 billion. This is after the agreement on VAT in the Digital Age (VIDA), yet another step forward in our collective fight against VAT fraud.
The new agreement will streamline the process of accessing crucial information, which will allow EPPO and OLAF to investigate and prosecute cross-border fraud more effectively. The Eurofisc network will be mandated to share risk analysis results with EPPO and OLAF. Moreover, under strict conditions and in line with data protection rules, they will gain direct access to information in value-added tax.
This measure will increase fairness and better protect public funds. EPPO and OLAF will be empowered to successfully conclude more investigations. The EU can create a level playing field for businesses that follow the rules and ensure that those who engage in illicit activities are held accountable.
While the European Parliament is preparing its opinion on the proposal, the European Economic and Social Committee has already published its opinion. Find more information online.
