EU Finance Ministers (meeting within the ECOFIN Council) have decided to strengthen cooperation 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, from the French: Office européen de lutte antifraude), responsible for detecting fraud affecting the EU budget;
  • and Eurofisc4, the European network for the exchange of information on VAT fraud.

Main authorities involved and developments in the system

OrganisationCurrent roleWhat changes with the reformMain impact
European Public Prosecutor’s Office (EPPO)Prosecutes serious fraud affecting the financial interests of the EUDirect and targeted access to VAT data from Member States in the context of investigationsFaster detection and prosecution of complex cross-border fraud
European Anti-Fraud Office (OLAF)Administrative investigation into fraud affecting the EU budgetEnhanced access to VAT data and strengthened cooperation with Member StatesBetter coordination of VAT-related anti-fraud investigations
EurofiscNetwork for the exchange of information between tax administrationsObligation to rapidly transmit analyses to EPPO and OLAF in case of suspicionReduction in the time needed to detect VAT fraud
EU Member StatesCollection and management of national VAT dataExpanded and structured sharing of data with European authoritiesImproved detection of complex fraud schemes
European CommissionRegulatory framework for VATAdoption of implementing technical acts on data sharingHarmonisation of control practices and tools

What will change

These organisations will now have faster and more direct access to certain VAT data held by Member States, for example:

  • VAT numbers;
  • trade between European companies;
  • certain customs and payment-related data.

The aim is to detect complex fraudulent schemes more quickly, including so-called « VAT carousel » fraud, where companies use several countries to divert VAT.

Controlled supervision

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 more easily cross-check information between countries;
  • inconsistencies in VAT declarations will be detected more quickly;
  • controls on intra-Community operations could become more efficient and more frequent.

Companies operating in several EU countries will therefore have an interest in strengthening compliance in particular regarding:

  • their intra-Community VAT numbers;
  • their VAT returns;
  • their logistics flows and invoices;
  • consistency between customs, accounting and VAT.

Where does the text stand?

The proposal still needs to be approved by the European Parliament, probably in July 2026, before entering into force.

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Sources:

  1. European Commission ↩︎
  2. European Public Prosecutor’s Office (EPPO) ↩︎
  3. European Anti-Fraud Office (OLAF) ↩︎
  4. Eurofisc ↩︎

Noémie Almot
Community Manager & Copywriter

Noémie is a specialised content writer at ASD Group. She creates and manages blog articles as well as news updates on our websites, with a focus on VAT, international taxes, customs operations, social regulations, and international trade. With her clear and educational writing style, she makes complex and technical topics easily understandable and relevant for businesses.