The EESC backs enhanced administrative cooperation to combat VAT fraud. Tax fraud in the EU amounts to approximately 2 to 2.5% of GDP, i.e. between 200 and 250 billion EUR. The application of the current Regulation has been unsatisfactory, argues the European Economic and Social Committee (EESC)

The EESC has adopted an opinion on "VAT: combating against fraud", where it notes that resistance to change is having a detrimental effect on national and EU finances. Member States primarily tend to protect their own interests, which are taking precedence over the common good. Parliament and also Commission have worked on this issue, which is a big problem in EU economy.

The opinion stresses that the proposed recast of the Regulation changes the approach to protecting VAT revenues, by providing Member States with tools to cooperate closely and exchange information faster. Furthermore, it envisages national responsibility for the protection of VAT revenues. The EESC emphasises the need for a framework to ensure the quality, comparability and usability of information in national databases.

The creation of a common structure to combat VAT fraud (Eurofisc) may be the most significant innovation. The EESC unreservedly supports this initiative but, at the same time, draws attention to a long-standing issue, "the need to establish cooperation with other bodies engaged in the fight against organised crime and money laundering", concluded the rapporteur, Umberto Burani (Employer's Group, Italy).