EU Finance Ministers (meeting within the ECOFIN Council) have agreed to strengthen collaboration between several European bodies specialised in the fight against fraud1:
- the European Public Prosecutor’s Office (EPPO)2, which investigates and prosecutes serious financial fraud;
- the European Anti-Fraud Office (OLAF)3 – (OLAF, the European Anti-Fraud Office), responsible for identifying fraud affecting the EU budget;
- and Eurofisc4, the European network facilitating the exchange of information on VAT fraud.
Main authorities concerned and system developments
| Organisation | Current role | What changes with the reform | Main impact |
|---|---|---|---|
| European Public Prosecutor’s Office (EPPO) | Prosecutes serious fraud affecting the financial interests of the EU | Direct and targeted access to Member States’ VAT data in the context of investigations | Faster detection and prosecution of complex cross-border fraud |
| European Anti-Fraud Office (OLAF) | Administrative investigations into fraud affecting the EU budget | Improved access to VAT data and strengthened cooperation with Member States | Better coordination of VAT-related anti-fraud investigations |
| Eurofisc | Network enabling the exchange of information between tax administrations | Obligation to rapidly transmit analyses to the European Public Prosecutor’s Office and OLAF in the event of suspicion | Reduction in the time taken to detect VAT fraud |
| EU Member States | Collection and management of national VAT data | Broader and more structured sharing of data with European authorities | Better identification of complex fraud schemes |
| European Commission | VAT regulatory framework | Adoption of technical implementing acts relating to data sharing | Harmonisation of control practices and tools |
What will change
These organisations will now benefit from faster and more direct access to certain VAT data held by Member States, such as:
- VAT numbers;
- trade between European businesses;
- certain customs and payment-related data.
The objective is to identify complex fraudulent schemes more quickly, including so-called “VAT carousel fraud”, in which companies exploit several countries to divert VAT.
A controlled framework
The EU nevertheless specifies that:
- access to data will be strictly limited to ongoing investigations;
- there will be no generalised surveillance of businesses;
- European data protection rules must be respected.
Why this matters for businesses
This reform means that:
- European administrations will be able to cross-check information between countries more easily;
- inconsistencies in VAT returns will be detected more quickly;
- checks on intra-Community transactions could become more effective and more frequent.
Businesses operating in several EU countries will therefore have an interest in strengthening their compliance, particularly with regard to:
- their intra-Community VAT numbers;
- their VAT returns;
- their logistics flows and invoices;
- consistency between customs, accounting and VAT data.
Current status of the text
The proposal still needs to be approved by the European Parliament, probably in July 2026, before it can enter into force.
Secure your processes in line with the evolution of VAT control rules in the EU
Check the compliance of your intra-Community VAT operations without delay.
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