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EU: VAT payment data, reporting to address fraud in e-commerce sector

EU: VAT payment data, reporting

The European Commission today issued a release concerning an agreement by the EU Member States to enhance the value added tax (VAT) system by requiring reporting of data with regard to online purchases.


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According to the EC release, the agreement would enhance the EU's VAT system and the ability to address fraud in the e-commerce sector by requiring relevant data on online purchases to be made available to anti-fraud authorities.

The new rules are intended to reinforce EU Member States’ capacity to address e-commerce VAT fraud, by providing that anti-fraud experts in EU Member States have access to VAT-relevant data held by payment intermediaries such as credit card and direct debit providers that facilitate over 90% of online purchases in the EU. These payment service providers would be required to provide EU Member State authorities with certain payment data from cross-border sales that authorities can then access and analyse.

In turn, both EU and non-EU online sellers would be identifiable when they do not comply with these VAT obligations.

The new rules will need to be confirmed by the European Parliament before entering into force in January 2024.

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