The Council of the European Union reached a political agreement on strengthening administrative cooperation to combat tax fraud. To streamline multilateral cooperation in the fight against value-added tax fraud, the Member States of the European Union established a network for the rapid exchange of information. This network operates under the name Eurofisc.
Eurofisc is not a separate institution but rather a decentralised cooperative structure without legal personality. The purpose of this network is to support cooperation between Member States and to enable the rapid exchange of relevant information. This mechanism is designed to facilitate the detection and combating of specific forms of VAT fraud.
To this end, Member States designate so-called Eurofisc liaison officials, who are responsible for the exchange of information within the network.
Collection and Exchange of Data
Member States collect and transmit various types of tax information within the network. These include in particular data derived from:
- VAT summary statements
- VAT taxpayer registration filings, both domestic and foreign-established
- VAT returns
- Additional datasets introduced after 2014
This information is promptly entered into national electronic systems to ensure rapid data exchange between Member States.
Information that may be made available to other Member States includes in particular data on the total value of supplies of goods and services that a VAT-registered taxpayer has made to another taxpayer. Access to this data is subject to specific conditions:
- Access to the data must be related to an ongoing investigation into suspected tax fraud
- Access is carried out through Eurofisc liaison officials who have individual access rights to national electronic systems
- Access is generally granted during standard working hours
- All transmitted information is subject to the principle of confidentiality
The values of transmitted data are presented in the currency of the Member State providing the information.
The Role of Liaison Officials
Each Member State designates at least one liaison official within the Eurofisc network. This function is typically performed by officials of the competent tax administration authorities, in particular units responsible for the international exchange of VAT information.
Liaison officials carry out their tasks independently in operational terms, while remaining accountable to the competent authorities of their Member State.
Working Areas and the Early Warning System
Within the Eurofisc network, Member States establish various thematic working areas. Their purpose is in particular to develop a multilateral early warning system for potential cases of VAT fraud and to coordinate information exchange between Member States.
Liaison officials may participate in one or more working areas. Member States decide which areas they wish to actively participate in, provided that they are required to participate in the exchange of information with other Member States operating in a given area.
Liaison officials also have permanent access to national electronic systems containing information on VAT settlements.
Coordination of Work in Working Areas
In each working area, liaison officials elect a coordinator from among themselves for a specified period. The coordinator's main tasks include:
- Analysing, organising and transmitting information received from liaison officials to other interested participants
- Ensuring the proper flow of information in accordance with agreed cooperation rules
- Making the results of work available to participants in a given working area
- Providing feedback to liaison officials participating in the working area
Technical and Organisational Support
Technological and organisational support for the operation of the Eurofisc network is provided by the European Commission. However, the Commission does not have direct access to operational information exchanged within the network.
Coordinators of individual working areas prepare periodic activity reports and submit them to the European Commission. These reports serve to assess the functioning of the system and to further develop administrative cooperation between Member States.