Council agrees new EU rules to tighten cooperation on VAT fraud probes
The Council of the EU provisionally agreed new rules to strengthen cooperation against value added tax fraud across the European Union. The measure increases coordination between member states, the European Public Prosecutor's Office and the European Anti-Fraud Office.
The new framework gives EPPO and OLAF more direct access to key VAT data on cross-border business transactions in the EU. That access includes information held by Eurofisc, described as the EU's anti-VAT fraud network.
The Council said the change is intended to give EU investigative bodies the targeted information they need to pursue suspected criminal activity more quickly. According to the Council, the practical effect is to provide EPPO and OLAF with first-hand information needed to launch and support investigations under their respective competences into suspected cross-border VAT fraud.
The institution said the new rules will improve coordination between actors involved in fraud detection and response, speed up investigations, and strengthen the EU's overall capacity to detect and combat VAT fraud affecting the Union's financial interests. The Council cited European Commission figures stating that cross-border VAT fraud, including missing trader intra-community fraud commonly known as carousel fraud, costs member state treasuries and the EU budget between EUR 12.5 billion and EUR 32.8 billion annually.
The text says the criminal activity is carried out mostly by organised crime groups. The rules take the form of a regulation amending Council regulation 904/2010 on administrative cooperation and combating VAT fraud.
The Council said the proposal follows the March agreement last year to make VAT reporting obligations for companies selling goods and services to businesses in another EU member state fully digital by 2030, which it said should further support the fight against VAT fraud. Formal adoption will follow once the European Parliament has adopted its opinion, currently expected in July 2026.
The regulation will enter into force twenty days after publication in the Official Journal of the EU.
