• Service: Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 2/12/2014

EU - Enhanced VAT control procedures, cross-border cooperation proposed 

February 12:  The European Commission (EC) adopted two reports concerning issues relating to value added tax (VAT) fraud within the EU.

According to the EC release (12 February 2014):

  • The first report looks at VAT collection and control procedures across the EU Member States, and concludes that EU Member States need to modernize their VAT administrations in order to reduce the “VAT gap” estimated to be approximately €193 billion in 2011.
  • The second report looks at how effectively administrative cooperation and other available tools are being used in order to combat VAT fraud in the EU, and concludes more effort is needed to enhance cross-border cooperation including joint audits, administrative cooperation with third countries, more resources for enquiries, and controls and automatic exchange of information among all EU Member States on VAT.

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