EU Strengthens VAT Fraud Fight with EPPO & OLAF Access

The European Council approved new measures designed to improve the EU’s ability to combat VAT fraud, particularly fraud linked to cross-border trade between EU countries. This marks another critical step towards granting the EPPO and OLAF direct access to key VAT data. With this move, the EU aims to reduce VAT fraud, which in recent years has significantly increased and costs public budgets billions of euros annually.

Next Steps in the Process

The proposal to grant OLAF and EPPO access to VAT data has advanced considerably. It will take effect after the European Parliament issues its opinion and the Council formally adopts it, entering into force twenty days after publication in the EU's Official Journal. Parliament is expected to issue its opinion in July 2026.

Once the procedure is completed, the EU will have in place measures that should eliminate, or at least significantly reduce, schemes that cost EU countries and the EU budget between EUR 12.5 billion and EUR 32.8 billion each year. Notably,  these schemes are largely driven by organised crime groups exploiting weaknesses in cross-border VAT systems. The difficulty in estimating the full extent of the damage underscores just how urgently these measures are needed.

Measures will be implemented through an amendment to Council Regulation 904/2010, which governs administrative cooperation in VAT matters. This decision builds on earlier reforms, including the 2030 plan to fully digitise VAT reporting for cross-border business transactions, which is expected to further reduce opportunities for fraud.

Conclusion

Criminal organisations have grown increasingly sophisticated over time, constantly adapting to evade detection. However, new measures should strengthen the ability of EU investigative bodies to access the specific, targeted information they need to act more quickly against criminals involved in VAT fraud. Time will tell what the result of these measures will be. However, one thing is sure, the EU is reducing the maneuvering space for all taht want to benefit from evading VAT rules and regulations.

Source: European Council, VATabout