European Commission: Rules on VAT and Administrative Cooperation
The European Commission (EC) highlighted the VAT and administrative cooperation for taxes between EU nations on March 14. In the field of VAT, Administrative cooperation between the tax authorities of EU Member States facilitates the proper implementation of VAT laws on cross-border transactions.
The Regulation establishes a framework for the interchange of data between tax authorities, including:
- If a member state learns information on VAT transactions that may be significant to another country, it engages in a spontaneous exchange of information.
- When extra information on VAT transactions is required from another nation, it is exchanged on request.
- When information is useful for other nations, such as new modes of transportation or non-established merchants, automatic sharing of information is employed.
- Local tax officials may establish international audit teams to manage multinational corporations via joint audits and simultaneous controls.
These information exchanges are organized by the Eurofisc network, which is made up of liaison officers from each of the 27 member countries as well as Norway.
Eurofisc liaison officials may take necessary action at the national level based on the information exchanged within the Eurofisc network and following analysis of the available data, such as continuing with Information requests, audits, and deregistration of VAT numbers.
Eurofisc’s purpose is to work on the following:
- joint data processing and analysis;
- coordination in conducting a follow-up of activities;
- access to customs data on VAT-exempt imports and exports;
- access to Europol and the OLAF directly for the purpose of exchanging information.
The Eurofisc network was established in 2010 to prevent cross-border VAT fraud. The Council Regulation (EU) No 904/2010 serves as the foundation for this collaboration.
Source: ec.europa.eu
