New Data Mining Tool to Combat VAT Fraud
10 September 2019
2018-Max_Planck_Herr_Wahl_1355_black white_Zuschnitt.jpg Thomas Wahl

Since mid-May 2019, EU Member States are able to use a new electronic tool that is expected to detect VAT fraud at an early stage. The Transaction Network Analysis (TNA) is an automated data mining tool that interconnects Member States’ tax IT platforms. In this way, cross-border transaction information can be quickly and easily accessed, and suspicious VAT fraud can be reported nearly in real time.

Besides closer cooperation between the EU’s network of anti-fraud experts (“Eurofisc”), when analysing information on carousel VAT fraud, TNA also boosts cooperation and information exchange between national tax officials. Eurofisc officials can now cross-check information against criminal records, databases, and information held by Europol and OLAF.

TNA is another EU tool to make the collection of VAT more fraudproof. In the midterm, the Commission hopes to reach consensus on a more fundamental overhaul of the EU’s VAT legislation (see eucrim 4/2017, pp. 168-169).

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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