EU Council reaches agreement on VAT administrative cooperation

On May 5, 2026, the EU Council of Economic and Finance Ministers (ECOFIN) reached a political agreement regarding the amendment of Regulation (EU) No 904/2010. The agreement aims to strengthen administrative cooperation among member states to combat cross-border VAT fraud. Key measures include improving the exchange of information and increasing access to VAT data for the European Public Prosecutor's Office and OLAF. The European Commission estimates that VAT-related revenue losses amount to €128 billion across the EU. The Cypriot Presidency prioritized this dossier and facilitated the diplomatic consultations necessary for the agreement. The proposal now requires a formal opinion from the European Parliament and final adoption by the Council before it can be published. This initiative is designed to protect the financial interests of member states against systemic tax evasion.