In a joint FISC-CONT committee meeting on 25 June 2026, MEPs and EU bodies debated the scale and response to VAT and customs fraud, with European Chief Prosecutor Laura Codruta Kovesi (EPPO) reporting nearly 1,000 VAT fraud cases with damages exceeding €45 billion. Kovesi criticised the European Commission for not prioritising VAT fraud, urging a revision of the EPPO regulation, more resources, and better data sharing. She cited Operation Calypso (€800 million damages) and the Admiral case (€2.2 billion) as examples of large-scale fraud.
OLAF Director Peter Klement highlighted customs-related VAT fraud, noting €750 million in recommended protective measures, and called for a definitive VAT system to replace the temporary intra-community regime. Eurofisc’s Mariana Marinelic detailed €15.1 billion in detected fraudulent transactions in 2025, but stressed the network’s administrative limits. MEPs Luděk Niedermayer (EPP) questioned the effectiveness of reverse charge mechanisms, while Julien Sanchez (PfE) called VAT fraud a systemic threat. All speakers agreed on the need for enhanced cooperation, legislative reform, and adequate enforcement resources. Next steps include potential revision of EPPO rules and improved data-sharing frameworks. The debate exposed a cleavage between the need for stronger EU-level enforcement and national sovereignty over tax collection, with Kovesi pushing for expanded EPPO powers while member states may resist ceding authority. Affected stakeholders include national tax authorities, customs agencies, e-commerce platforms, and organised crime groups.
Positive impacts of proposed reforms include reduced fraud losses and increased revenue for member states, but negative impacts include potential administrative burdens on businesses and privacy concerns from enhanced data sharing.