06 February 2018

EU-Norway agreement signed, strengthening the prevention of VAT fraud

The agreement will provide EU member states and Norway with a legal framework for administrative cooperation in preventing VAT fraud and assisting each other in the recovery of VAT claims.

It follows the same structure that is currently used for cooperation between the member states and the same instruments, such as electronic platforms and e-forms. Fraud schemes often exploit weaknesses in the way VAT transaction chains are controlled when they include counterparts located in third countries.

Norway is the first country with which the EU has an agreement in this field. A member of the European Economic Area, it has a similar VAT system to the EU's. It enjoys a good tradition of VAT cooperation with the EU member states. [...]

The legal framework for VAT cooperation between the member states is set by:

• regulation 904/2010 on VATadministrative cooperation and preventing fraud;
• directive 2010/24/EU on mutual assistance in the recovery of tax claims.

EU-Norway agreement on cooperation, prevention of fraud and recovery of claims in the field of VAT

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