All Western industrialized states intensified their efforts to combat tax fraud in the last decade. In the fields of direct taxes (Income and Corporation Tax) these efforts are well advanced. The OECD Action Plan on Base Erosion and Profit Shifting is in the process to be transferred into the legislation of the participating memberstates. However, it does not cover the main problem – VAT-fraud. Memberstates of the European Union lose over 150 billion Euro every year. Therfore it does not surprise that the EU intensify their co-operation in this field with other states.
The following press release has been published by the EU commission:
The Commission has successfully completed the negotiation of an agreement between the EU and Norway on administrative cooperation, recovery assistance and combating fraud in the field of VAT.
During the month of May 2017, the EU – Norway agreement on VAT cooperation was initialled by Ms Caroline Edery (Head of Unit in the Taxation and Customs Union Directorate-General) for the EU and Mr Tor Lande (Deputy Director General in the Norwegian Ministry of Finance) for Norway. The initialling of the agreement marked the end of the negotiation process which was launched in June 2015.
Once it has been signed and adopted, this agreement will provide the EU Member States and Norway with a solid legal framework for a sound cooperation to combat VAT fraud and assist each other in the recovery of VAT claims.
Author: Peter Scheller, German Tax Adviser, Master of International Taxation