Today the Commission adopted two reports which shed more light
on problems linked to fighting Value Added Tax (VAT) fraud within the EU, and
which identify possible remedies. The first report looks at VAT collection and
control procedures across the Member States, within the context of EU own
resources.
It concludes that Member States need to modernise their VAT
administrations in order to reduce the VAT Gap, which was around €193 billion
in 2011. Recommendations are addressed to individual Member States on where
they could make improvements in their procedures. 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. It finds that more effort is
needed to enhance cross border cooperation, and recommends solutions such as joint
audits, administrative cooperation with third countries, more resources for
enquiries and controls and automatic exchange of information amongst all Member
States on VAT. Both reports are part of the broad Commission Action Plan to
fight against tax fraud and evasion, and can be found online on the European
Commission's Taxation and Customs Union website.