European Union member states have agreed to collaborate on tools to close loopholes in the EU’s value added tax (VAT) system.
The measures, proposed in 2017 by the European Commission, include information sharing and cooperation between national tax authorities and law enforcement authorities.
According to the European Commission, the loopholes in the system could lead to large-scale VAT fraud, creating a loss of about €50bn for EU member states.
Pierre Moscovici, commissioner for economic and financial affairs, taxation and customs, said: “The new rules agreed today confirm the willingness of Member States to tackle the problem of VAT fraud together.
“The EU is making real progress on VAT reform, towards a system that is fit for purpose and that stops criminals in their path. Taken together, the Commission’s package of VAT proposals, of which these rules are part, will have a profound impact on VAT fraud and a positive effect on the public finances and budgets of EU countries.”
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