EU Council reaches provisional agreement to combat cross-border VAT fraud

Under the Cypriot presidency, the Council of the EU has reached a provisional agreement to strengthen measures against VAT fraud. The new framework improves cooperation between EU member states, the European Public Prosecutor's Office (EPPO), and the European Anti-Fraud Office (OLAF). These agencies will now receive direct access to critical data regarding cross-border transactions, including information from the Eurofisc network. Cypriot Finance Minister Makis Keravnos emphasized that while progress has been made, member states continue to lose billions of euros annually. The initiative aims to facilitate faster detection and prosecution of organized criminal groups. According to the European Commission, losses from cross-border VAT fraud, particularly carousel fraud, are estimated at 12.5 to 32.8 billion euros per year. This agreement seeks to safeguard both national and union-wide public revenues by providing authorities with better-targeted investigative tools.