On October 2, the EU and Norway signed an agreement to update their existing framework for administrative cooperation in VAT matters, focusing on fraud prevention and claim recovery. This revised agreement introduces new tools to strengthen their collaboration.
The original EU-Norway agreement, which came into effect on September 1, 2018, was the first international treaty focused on VAT cooperation. After six years, the partners have amended it to align with Council Regulation 904/2010 on VAT fraud prevention and Council Directive 2010/24/EU on mutual assistance for the recovery of tax-related claims.
Norway, as a key partner of the EU and a member of the European Economic Area (EEA), plays a significant role in VAT policy and cooperation. At the signing, Gerassimos Thomas, the EU’s Director-General for Taxation and Customs Union, highlighted the strengthened partnership, emphasizing its importance in combating VAT fraud and improving claim recovery. Norwegian Ambassador Anders Eide added that the agreement underscores the close cooperation between the EU and Norway, showcasing the power of regional partnerships in addressing tax fraud.
Key Enhancements in the Agreement
The updated agreement provides a legal framework for deeper cooperation, equipping both parties with advanced tools for VAT management. These include:
- Automatic and Spontaneous Information Exchange
- Assistance with Administrative Notifications
- Joint Participation in Administrative Inquiries (PAOEs)
- Simultaneous Controls (MLCs)
- Involvement in Eurofisc, the EU’s network for early detection of VAT fraud
In the field of claim recovery, the agreement enables:
- Requests for Recovery and Enforcement
- Precautionary Measures
Benefits of the New Tools
The expanded toolset will enhance the efficiency of collaboration, particularly through improved information exchange and joint administrative actions. These tools also enable better follow-up within Eurofisc, the EU’s specialized fraud detection network.
Importantly, the agreement ensures full compliance with data protection regulations, updating references to Directive 95/46/EC with Regulation (EU) 2016/679 (GDPR), safeguarding personal data throughout these cooperative efforts.
This strengthened partnership marks a significant step in combating VAT fraud and improving the recovery of tax-related claims, highlighting the value of regional cooperation in addressing cross-border challenges.