EU Launches New System For Tackling VAT Fraud
The European Commission has announced the launch of the Transaction Network Analysis tool, a new system to enable EU member states to rapidly exchange and jointly process VAT data.
Tax Commissioner Pierre Moscovici said: “Criminal VAT fraud is one of the major issues facing our public finances today and its eradication should be a top priority for EU governments. This new tool will increase the speed at which authorities can uncover and act on suspicious activity.”
The TNA became available for use on May 15. According to the Commission, member states will have fast and easy access to cross-border transactions information. This should mean that they can act quickly when potential VAT fraud is flagged.
The Commission also hopes that the TNA will allow for closer cooperation between the EU’s network of anti-fraud experts (Eurofisc) when jointly analyzing information, with the aim of ensuring that VAT carousel fraud can be detected and intercepted as fast and effectively as possible. Eurofisc officials will be able to cross-check information with criminal records, databases, and information held by Europol and the EU’s anti-fraud agency, OLAF, and to coordinate cross-border investigations.