EU Issues New Regulation to Strengthen VAT Fraud Cooperation
The EU has passed new regulations aimed at combating cross-border VAT fraud, granting broader VAT information access to the European Public Prosecutor's Office (EPPO) and the Anti-Fraud Office (OLAF). The regulation will take effect in August 2026 and aims to enhance the fight against tax violations in the e-commerce sector through multinational data sharing and joint investigation mechanisms.
What are the key facts?
- 1Regulation No: (EU) 2026/1743
- 2Effective Date: August 16, 2026
- 3Enhanced VAT information access for EPPO and OLAF
What happened?
The EU has strengthened its oversight of cross-border VAT fraud through Regulation (EU) 2026/1743. The new rules allow EPPO and OLAF to access the Central Electronic System of Payment Information (CESOP) and the VAT Information Exchange System (VIES) for targeted tax investigations. This new regulation will provide greater support for cooperation among national tax authorities in cross-border VAT fraud cases and improve the transparency and efficiency of information exchange.
What does this mean for cross-border sellers?
With the tightening of EU tax regulations, sellers must ensure compliance and transparency in VAT reporting to avoid investigation risks from abnormal tax data. Top priority action: review and refine your VAT reporting processes to ensure full compliance.