Changes from report parliamentary committee draft to plenary report

Change 24

AddedEXPLANATORY STATEMENT

AddedThe protection of the European Union's financial interests is a shared responsibility that requires a coordinated, modern and effective anti-fraud framework. VAT fraud, particularly cross-border carousel fraud, continues to deprive both the Union and its Member States public revenues, while distorting competition within the Single Market and increasingly serving as a source of financing for organised criminal networks. The evolution of these criminal schemes demonstrates that fraudsters exploit legal, operational and technological gaps that no single national authority can effectively address alone.

AddedThis report therefore calls for a strengthened and more coherent EU Anti-Fraud Architecture in the context of the post-2027 Multiannual Financial Framework. It recognises the complementary roles of OLAF, the European Public Prosecutor's Office, Europol, Eurojust and Eurofisc, while highlighting that closer cooperation, timely information exchange and interoperable digital systems are indispensable for detecting, investigating and prosecuting complex VAT fraud. Particular emphasis is placed on enhancing cooperation between customs and tax authorities, and on making better use of advanced digital technologies, including real-time data analysis.

AddedThe report also stresses that effective fraud prevention requires not only stronger investigative capacities but also a governance framework that ensures accountability, clear allocation of responsibilities and measurable performance. The forthcoming review of the EU Anti-Fraud Architecture should therefore be accompanied by concrete legislative proposals addressing identified weaknesses and reinforcing cooperation among all anti-fraud actors.

AddedThe report also underlines the importance of preserving and, where justified, extending the Reverse Charge Mechanism as one of the most effective targeted instruments for combating carousel VAT fraud. At the same time, the report stresses that the Union must draw lessons from previous large-scale VAT fraud schemes affecting the EU Emissions Trading System (ETS1), which resulted in billions of euros in revenue losses. In light of the forthcoming implementation of ETS2, it is essential that the Commission identifies potential vulnerabilities at an early stage and incorporates effective anti-fraud safeguards into the new system before it becomes fully operational.

AddedFinally, the report recognises that technological innovation, including the implementation of the VAT in the Digital Age package, offers a unique opportunity to strengthen the fight against VAT fraud. By combining digital reporting, real-time information exchange and stronger cooperation, the Union and its Member States can significantly improve ability to prevent, detect and prosecute fraud while reducing administrative burden for legitimate businesses. Strengthening the EU Anti-Fraud Architecture is therefore not only essential for protecting the financial interests but also for reinforcing citizens' trust in the sound management of public finances.