EU Moves to give EPPO and OLAF direct VAT data access in major anti-fraud overhaul
The reform would unlock EU-wide VAT databases for the first time, allowing investigators to track cross-border fraud faster and more effectively.
On 14 November 2025, the European Commission unveiled a major legislative proposal to reinforce the EU’s fight against cross-border VAT fraud by strengthening cooperation between the European Public Prosecutor’s Office (EPPO), the European Anti-Fraud Office (OLAF) and Member States. The initiative would give EU investigators direct, immediate access to VAT information systems for the first time — a step long requested by both agencies and highlighted repeatedly in audit and parliamentary reports.
The proposal forms part of a wider push to modernise the VAT administrative cooperation framework under Regulation 904/2010, following a Commission evaluation published the same day. With missing-trader intra-Community (MTIC) fraud still costing the EU between €12.5 billion and €32.8 billion annually, the Commission argues that improved data sharing and coordinated digital tools are essential to close long-standing loopholes exploited by organised fraud networks.
Why the change is needed
A persistent bottleneck in the EU anti-fraud architecture has been the limited ability of EPPO and OLAF to access VAT fraud indicators collected by Eurofisc — the EU network of national VAT investigators. Only nine Member States currently share their data with EPPO, citing the absence of an explicit legal basis for wider cooperation. As a result, EU prosecutors must often fall back on slow national information channels, delaying investigations and reducing the effectiveness of cross-border cases. The European Court of Auditors underscored this weakness in a March review.
EU Tax Commissioner Wopke Hoekstra emphasised the importance of the reform, noting that “investigators will be able to share and analyse data faster, and track down fraud, thanks to digital tools and secure data exchanges.”
What the amendment would change
The legislative amendment introduces a series of targeted but impactful changes designed to create a truly EU-wide VAT intelligence framework:
1. Direct data access for EPPO and OLAF
The proposal establishes a clear legal basis granting both bodies:
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immediate, centralised access to EU-wide VAT databases;
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the ability to cross-check fraud indicators in real time;
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improved capability to initiate and coordinate cross-border investigations.
This includes access to:
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the VAT Information Exchange System (VIES);
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Import One Stop Shop (IOSS) data;
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Central Electronic System of Payment Information (CESOP);
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reports on IOSS misuse and customs procedure 42;
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the Transaction Network Analysis (TNA) tool.
2. Mandatory Eurofisc cooperation
Eurofisc would be required to:
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spontaneously share fraud signals with EPPO and OLAF;
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respond to requests for supplementary information;
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strengthen its role as the central VAT fraud intelligence hub.
This closes a long-standing governance gap and provides agencies with direct operational inputs for high-risk cases.
3. A new EU framework for secure digital exchange
The proposal enhances the EU’s digital anti-fraud infrastructure, preparing for:
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new secure data-sharing channels;
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coordinated analytical tools;
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future centralised platforms introduced under the VAT in the Digital Age (ViDA) initiative.
The Commission notes that the reforms “will unleash the potential of existing and new digital solutions” to support real-time cooperation.
Timeline and next steps
The proposal now moves to the Council for unanimous approval, and to the European Parliament and Economic and Social Committee for consultation.
If adopted as planned:
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technical specifications and access conditions will be defined by an implementing act in 2026;
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full operational capabilities are expected after July 2030, aligned with the rollout of the central VAT information exchange system under the ViDA package.
Funding will be channelled through the Fiscalis programme, with EPPO and OLAF expected to reimburse costs via memoranda of understanding or service-level agreements.
