On Tuesday 5 May, the Council of the EU approved a provisional agreement to facilitate access to VAT data for the European Public Prosecutor’s Office (Eppo) and the European Anti-fraud Office (Olaf). This development comes at a time when existing mechanisms have helped to identify massive amounts of fraud, but remain hampered by operational constraints. This text amends the 2010 regulation governing administrative cooperation in the field of VAT, which already organises the exchange of information between national administrations to ensure the correct application of the tax and to combat fraud, particularly in intra-Community transactions.
The new framework will enable the Eppo and Olaf to access data—particularly from the Eurofisc network—more directly. It provides for centralised access, but this is strictly limited to targeted searches in specific cases, ruling out any blanket use of the databases.
According to the European Commission, cross-border VAT fraud—particularly carousel fraud schemes—results in an estimated annual loss of revenue of between €12.5bn and €32.8bn.
Eurofisc is gaining momentum
Recent operational data illustrates the scale of the problem and the central role played by Eurofisc in detecting it. In 2024, the network identified 6,147 suspected fraudsters, 3,886 of whom were involved in “missing trader” fraud schemes. Analyses also uncovered €13.8bn in suspicious or fraudulent transactions.
At the same time, 206 networks of commercial companies were identified as posing a high risk of fraud, whilst 812 businesses were directly linked to fraudulent activities. Furthermore, 2,665 suspicious operators were struck off the VAT registers, demonstrating a tangible impact in terms of preventing and blocking fraudulent schemes.
“In recent years, we have made considerable progress in the fight against VAT fraud. However, our budgets are still losing several billion euros every year, and the authorities need the right tools to tackle these criminal activities more swiftly,” said Makis Keravnos, Cyprus’s minister of Finance, whose country currently holds the rotating presidency of the Council of the European Union.
But information doesn’t circulate very well
Despite these results, several recent reports highlight structural limitations. The European Court of Auditors points out that the exchange of information between the various bodies remains inadequate, which reduces the overall effectiveness of anti-fraud measures. It noted, in particular, that the still limited cooperation between the Eppo and Olaf prevents the full integration of criminal investigations and administrative measures to protect the EU budget.
In this context, the European Commission is calling for an interoperable system to enable a faster and more structured exchange of information on allegations of fraud and ongoing investigations, including the creation of a centralised register. The Eppo also highlights persistent challenges, notably shortcomings in detection and reporting, as well as limited capacity to tackle organised criminal groups operating on a transnational scale. Europol, for its part, highlights its growing role in providing operational support, having contributed to 158 large-scale investigations conducted by the Eppo between 2022 and 2024.
These factors point to a common conclusion: whilst detection tools are improving, the speed of access to data and the smooth flow of information remain key factors in enhancing the effectiveness of prosecutions.
The European Parliament has yet to deliver its opinion, which is expected in July 2026. The Council will then be able to formally adopt the regulation, which will enter into force 20 days after its publication in the Official Journal of the European Union.
