​Council of European Union agrees on proposal to strengthen administrative cooperation in field of VAT

On 22 June 2018, the Council of the European Union agreed on measures to strengthen administrative cooperation in the field of VAT in order to improve the prevention of VAT fraud. The proposed regulation addresses the most widespread forms of cross-border fraud.

The measures improve the exchange and analysis of information shared by the Member States’ tax administrations and with law enforcement bodies and strengthen Eurofisc, a network of national tax officials for the exchange of information on VAT fraud. It also introduces new instruments for cooperation such as administrative enquiries (audits) carried out jointly.

The proposal is aimed to tackle VAT fraud in the short term, pending the implementation of a new definitive VAT system. Proposals to replace the current ‘transitional’ VAT provisions by a definitive system are currently under discussion.

The council can vote on the regulation once the European Parliament has delivered its opinion. The new cooperation rules will then be published in the EU's Official Journal and enter into force 20 days later.

Source: European Council

27 Jun 2018 at 1:13 pm