Council Advances Legislation Against VAT Fraud in E-Commerce
12 January 2020
2018-Max_Planck_Herr_Wahl_1355_black white_Zuschnitt.jpg Thomas Wahl

On 8 November 2019, the ECOFIN Council reached a political agreement on future EU legislation that would make VAT-relevant data in e-commerce trade available to anti-fraud authorities. The new rules will oblige payment service providers to keep records of cross-border payments related to e-commerce. These data can then be accessed and analysed by anti-fraud specialists (the “Eurofisc” network). The aim is to facilitate the identification of both EU and non-EU online sellers if they do not comply with VAT obligations. Amendments to the regulation on administrative cooperation in the area of VAT will pave the way for national tax authorities to cooperate in this area in order to detect VAT fraud and control compliance with VAT obligations.

The envisaged legislation has yet to be confirmed by the European Parliament. It is expected that the new rules will apply as of 2024.

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2018-Max_Planck_Herr_Wahl_1355_black white_Zuschnitt.jpg
Thomas Wahl

Max Planck Institute for the Study of Crime, Security and Law (MPI CSL)

Public Law Department

Senior Researcher