Professional Documents
Culture Documents
| Legal
Contact | Search English (en)
notice
European Commission > Taxation and Customs Union > Taxation > Tax Co-operation, control and anti-fraud > Combating tax fraud
The debate on tax fraud was launched at EU level in May 2006 by the Commission's
Communication (COM(2006) 254 ) on a European strategy to combat tax
fraud (see speech by Commissioner Kovács, press release IP/06/697 and MEMO/06/221).
The Council made quickly clear that priority should be given to VAT fraud and efforts are
now fully focused on this issue.
The debate on VAT fraud has been divided into 2 main areas:
Conventional measures to reinforce the existing VAT system
More far reaching measures to modify the system, namely
An option for Member States to introduce a general reverse charge
system;
Taxation of Intra-Community transactions
Legislative proposals
http://ec.europa.eu/taxation_customs/taxation/tax_cooperation/reports/index_en.htm 31-10-2009
Página Combating tax fraud - Taxation and Customs Union - European Commissione 2 de 5
Until now the Council has not provided the required steering to the Commission as to the
desirability of a pilot project for the reverse charge in a volunteering Member State (Austria).
In absence of such steering, the Commission will not take further action in this area.
2. Conventional measures
On 23 November 2007 the Commission presented a Communication (See the Commission's
Communication COM/2007/758 and the working document SEC/2007/1584 )
by which it asked the Council for political steering on some key elements of the VAT anti-
fraud strategy within the EU.
These key elements concerned the conventional measures like the need of tax administrations
for accurate information, the integration of an EU approach into the management of the VAT
system and the importance of updated information on the VAT status of persons.
The ECOFIN Council meeting of 4 December 2007 provided political steering for further
work on certain conventional measures targeting to fight VAT fraud more efficiently.
The work carried out in ATFS on the conventional measures has lead to a first Commission
proposal, adopted on 17 March 2008 (see press release IP/08/454 and COM/2008/147
) for the amendment of the VAT Directive and the VAT Administrative Cooperation
Regulation to speed up the collection and exchange of information on intra-Community
transactions from 2010 onwards. The aim of this proposal is to ensure that Tax Authorities of
the destination Member States are informed much quicker than today about intra-Community
acquisitions taking place on their territory and therefore have the possibility to act at an
earlier stage.
Based on that first Commission proposal, the Council on 16 December 2008 adopted a
Directive and a Regulation, after consultation of the European Parliament and the European
Economic and Social Committee. See the press notice (10th item), the Council's press release
and the adopted texts (EU OJ No L 14 of 20 January 2009).
Working programme
At the ECOFIN of 14 May 2008, the Commission reported on the work that has been carried
out in the first half of 2008 in close cooperation with the Member States. It also announced
the presentation of a communication for November 2008 and the different legislative
proposals it intends to present by the end of 2008, including a timetable.
1. The Communication
The European Commission has adopted on 1 December 2008 a Communication
(COM/2008/807 , see also press release IP/08/1846) setting out a short term
action plan with a list of future legislative measures aiming at enhancing tax administrations
capacity to prevent and detect VAT fraud (in particular "missing trader fraud") as well as to
recover taxes in case of fraud. Most of these measures directly result from the discussions on
the conventional measures that took place in the Anti Tax Fraud Strategy (ATFS) group.
This Communication intends also to initiate a reflection on a longer term scale notably about
http://ec.europa.eu/taxation_customs/taxation/tax_cooperation/reports/index_en.htm 31-10-2009
Página Combating tax fraud - Taxation and Customs Union - European Commissione 3 de 5
the relation between taxpayers and Tax Administrations and the opportunities offered by IT
in that context.
2. Proposal presented in December 2008 and Directive adopted in June 2009
Also on 1 December 2008, the European Commission presented a proposal to amend the
VAT Directive in two specific areas (see press release IP/08/1846 and proposal
COM/2008/805 ):
Harmonise the conditions for the importer to benefit from the exemption of VAT upon
importation, when this importation is followed by an intra-Community supply or transfer
of goods to another Member State. This should avoid the increasing misuse that fraudsters
make of this particular exemption in missing trader fraud schemes. That part of the
proposal was adopted by the EU Council on 25 June 2009 and this new Directive will
apply as from 1 January 2011 (see the Council press release and the text of the Directive).
Under the Directive the exemption will apply only if the importer has provided the
Member State of import with his VAT identification number, his customer's VAT number
and the evidence that the goods are intended to be transported to another Member State.
Make the supplier in intra-community transactions liable for the VAT loss created by his
missing customer in another Member State, when he contributed to the loss by not
reporting (or by reporting false or incomplete information or by reporting late) his supply
to his VAT authority. The proposal will provide tax administrations with a tool for
recovering VAT from non-established traders, that intentionally do not report (or report
incomplete/false data or report late) their supply to the tax authorities.
http://ec.europa.eu/taxation_customs/taxation/tax_cooperation/reports/index_en.htm 31-10-2009
Página Combating tax fraud - Taxation and Customs Union - European Commissione 4 de 5
http://ec.europa.eu/taxation_customs/taxation/tax_cooperation/reports/index_en.htm 31-10-2009
Página Combating tax fraud - Taxation and Customs Union - European Commissione 5 de 5
Other reports
Study prepared for the Commission The study analyses the gap between the amount of VAT due
and the amount received in 25 Member States. See also the en
30/10/2009 press release (IP/09/1655)
Study prepared for the Commission The study analyses the possible impact on business of
measures envisaged for fighting VAT fraud (More detailed en
17/01/2008 information)
COM(2004) 855 Report from the Commission to the Council and the European
Parliament: Fifth report under article 12 of Regulation (EEC,
en
Euratom) No 1553/89 on VAT collection and control
20/01/2005 procedures - see also annex
COM (1996) 681 Report from the Commission to the Council and the European
Parliament - Application of Council Regulation (EEC) 218/92 of en
27 January 1992 on administrative coopeation in the field of
8/01/1997
indirect taxation (VAT) - second article 14 report
COM (1994) 262 Report from the Commission to the Council and the European
Parliament - Application of Council Regulation (EEC) N°
en
218/92 of 27 January 1992 on administrative cooperation in
23/06/1994 the field of indirect taxation (VAT)
http://ec.europa.eu/taxation_customs/taxation/tax_cooperation/reports/index_en.htm 31-10-2009