EU member states have provisionally agreed new rules to boost cooperation with EU investigative bodies in tackling cross-border value added tax (VAT) fraud.
Under the deal, national authorities will increase information-sharing with the European Public Prosecutor’s Office (EPPO) and the European Anti-Fraud Office (OLAF), including giving both bodies more direct access to key VAT data on cross-border business transactions held within Eurofisc — the EU network set up to help member states work together against VAT fraud, the Council of the EU announced on Tuesday.
Makis Keravnos, Cyprus’s finance minister, said VAT fraud still costs public budgets “billions of euros every year”, adding that the agreement would give EU investigative bodies “the targeted information they need to pursue criminals swiftly.”
Cross-border VAT fraud includes “missing trader intra-community fraud”, commonly known as carousel fraud, where criminals exploit cross-border trade rules to claim VAT refunds or avoid paying VAT.
The European Commission estimates this type of fraud costs member states and the EU budget between €12.5 billion and €32.8 billion a year and is carried out mostly by organised crime groups.
What changes under the new framework
The Council said the changes are designed to give EPPO and OLAF the first-hand information needed to launch and support investigations into suspected cross-border VAT fraud within their respective remits.
The new rules take the form of a regulation amending existing EU legislation on administrative cooperation and combating VAT fraud.
The Council noted that the European Parliament is expected to adopt its opinion on the file in July 2026, after which member states will move to formally adopt the new rules. The regulation will enter into force 20 days after publication in the EU’s Official Journal.
