The EU’s Economic and Financial Affairs Council reached political agreement on May 5 on changes to the bloc’s rules for administrative cooperation on VAT, the Ministry of Finance said.
The agreement concerns a proposal to amend Regulation (EU) No 904/2010, which governs cooperation between EU member states in the field of value added tax.
According to the ministry, Cyprus had made the completion of the file a key priority of its Presidency of the Council of the European Union and actively supported the work that led to the agreement.
The proposed changes strengthen the existing cooperation framework between member states, with particular emphasis on improving the exchange of information and enhancing access to VAT data at EU level for the European Public Prosecutor’s Office and the European Anti-Fraud Office.
The aim, the ministry said, is to improve the EU’s ability to tackle cross-border VAT fraud, which continues to cause significant losses in public revenue across the bloc. According to European Commission estimates cited in the announcement, these losses amount to €128 billion.
The next steps include an opinion from the European Parliament and the formal adoption of the regulation by the Council, before its publication in the Official Journal of the European Union and its entry into force.
The ministry described the agreement as a significant success for the Cyprus Presidency, saying it demonstrated Cyprus’ ability to handle complex and sensitive legislative files with a clear European impact.
It also said the agreement strengthened the image of the Cyprus Presidency as a reliable and effective honest broker, delivering tangible results for the benefit of the EU and its member states.
