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Stronger administrative cooperation in the VAT field [EU Legislation in Progress]

Written by Ana Claudia Alfieri (1st edition),

Finance Concept with Stack of Coins - VAT Alphabet arrangement.

© mrfiza / Fotolia

Value added tax (VAT) is an important source of revenue for both national governments and the European budget and, from an economic point of view, a very efficient consumption tax. However, the rules governing intra-Community trade are 25 years old and the current common EU VAT system is vulnerable to fraud. Moreover, businesses doing cross-border trade face much higher compliance costs than those only trading domestically. The administrative burden for national tax administrations is also excessive.

The reform of the system is planned in several consecutive steps and will take some years. In the meantime, the present proposal will change the VAT Administrative Cooperation Regulation (Regulation (EU) No 904/2010). It introduces the concept of the ‘certified taxable person’ in the VAT Information Exchange System and addresses three types of cross-border fraud: carousel fraud, used car fraud and VAT-free import fraud.


Proposal for a Council Regulation amending Regulation (EU) No 904/2010 as regards the certified taxable person; Amended proposal for a Council Regulation amending Regulation (EU) No 904/2010 as regards measures to strengthen administrative cooperation in the field of value added tax
Committee responsible: Economic and Monetary Affairs (ECON) COM(2017) 567 of 4.10.2017

COM(2017) 706 of 30.11.2017 (amended proposal)


Consultation procedure (CNS) – Parliament adopts a non-binding opinion only

Rapporteur: Roberts Zīle (ECR, Latvia)
Shadow rapporteurs:




Gabriel Mato (EPP, Spain)
Olle Ludvigsson (S&D, Sweden)
Thierry Cornillet (ALDE, France)
Barbara Kappel (ENF, Austria)
Miguel Urbán Crespo (GUE/NGL, Spain)
Molly Scott Cato (Greens/EFA, United Kingdom)
Next steps expected: Vote in plenary

timeline step 5 on 7 voted in plenary


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