EU agreement on information exchange to fight VAT fraud

Council of the European Union agreement on draft regulation proposed by the Commission (COM/2009/427) to improve exchange of information amongst Member States with a view to better combating VAT fraud. Compared to Council Regulation (EC) No 1798/2003 on administrative cooperation in VAT that is currently in place, the draft regulation extends Member States' responsibility to the protection of VAT revenue of all Member States. The draft regulation also defines cases in which Member States may not refuse to reply to a request for information and specifies cases in which Member States must exchange certain information spontaneously.

The draft regulation sets the legal basis for Eurofisc, a network of national officials to fight cross-border VAT fraud; the fields of investigation to be covered by Eurofisc are left to be determined by the competent authorities of Member States.

A further draft is to be considered at a future Council meeting.

For further information or advice please contact Pedro Fernandes.

Filed under Tax fraud, VAT.

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