Following investigations by the European Public Prosecutor’s Office (EPPO), the European Commission recognizes that the main challenges related to the VAT gap lie in cross-border trade between Member States. Estimates indicate an annual loss in VAT revenue from fraudulent intra-Community trade of between EUR 12.5 billion and EUR 32.8 billion, according to 2023 Eurofisc (the European network of national VAT anti-fraud officials) estimates.
The proposal aims to address these challenge…