Regulation 2010/904 - Administrative cooperation and combating fraud in the field of VAT (recast) - Main contents

Summary of Legislation
Legislative text

1. Summary of Legislation

Administrative cooperation in the field of VAT

SUMMARY OF:

Regulation (EU) No 904/2010 on administrative cooperation and combating fraud in the field of value added tax

WHAT IS THE AIM OF THE REGULATION?

It sets out procedures allowing EU countries’ authorities to work together and share information on value added tax (VAT) and to combat VAT fraud. It thus ensures that:

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VAT is assessed and applied correctly;
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fraud in VAT is detected and prevented;
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VAT revenue is protected.

KEY POINTS

Single central liaison office

EU countries each designate a central liaison office as a contact point for the other EU countries and the European Commission. The central liaison office must keep a list of designated officials and liaison departments who can share information with their counterparts in other EU countries. Where officials or liaison departments receive a request or reply to a request to send information, they must inform their central liaison office.

Sharing information

Countries share information using a standard form. Requested authorities must reply to requesting authorities within 3 months of receiving a request, or within 1 month if they already have the information available.

Certain information is shared automatically when:

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information from the EU country of origin is essential for the control system of the EU country of destination where taxation will take place;
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there is reason to believe that there has been or will be a breach of VAT legislation in the EU country of destination;
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there is a risk of tax loss in the EU country of destination.

EU countries may also share information spontaneously and may request feedback from the countries with which it is shared.

EU countries may refuse to provide information where:

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requests for information within a specific period from the requesting authority impose a disproportionate burden;
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the usual sources of information have not been exhausted by the requesting authority;
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it would lead to the disclosure of a commercial, industrial or professional secret or it is against public policy.

Storing information

Each EU country must store the following up-to-date information in an electronic system for at least 5 years starting from the end of the first calendar year in which access to it is granted, by automated means, to the other EU countries:

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information provided in the recapitulative statements submitted by taxable persons identified for VAT purposes;
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data on persons to whom the EU country has issued a VAT identification number;
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data on VAT identification numbers that have become invalid;
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information on non-established taxable persons.

VAT refunds

EU countries forward applications for VAT refunds they receive from taxable persons established in other EU countries to the authorities of the EU countries of refund concerned. This is done electronically within 15 days from the date of receipt of the application. The authorities of the EU countries of refund must notify the authorities of the other EU countries if:

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they require additional electronic coded information on the nature and services of the applicants; or
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if they require the applicants to provide a description of their business activities by using harmonised codes.

Non-EU countries

Provided that the assistance arrangements with the non-EU country in question allow it, the competent authority of an EU country may forward information it receives from that country to EU countries that request it and to any other EU country to which it may be of interest. EU countries’ authorities may forward information to non-EU countries if :

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the EU country from where it originates consents;
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the non-EU country in question has agreed to cooperate in gathering evidence of irregular transactions that may breach VAT legislation.

Fighting VAT fraud

The regulation establishes Eurofisc, a network of anti-fraud experts, which allows EU countries to exchange early warnings on businesses suspected of being involved in VAT fraud.

Electronic commerce

As part of a package of measures to modernise the EU’s VAT system, and to adapt it to EU cross-border business to consumer e-commerce, Regulation (EU) 2017/2454 amends Regulation (EU) No 904/2010 introducing rules that will increase administrative cooperation between EU countries. The 2017 amending regulation ensures that supplies of services and distance sales of goods under Directive (EU) 2017/2455 (which, in turn, amends Directives 2006/112/EC and 2009/132/EC) are covered, and applies from January 2021.

Among other things, the regulation requires that:

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the identification number under which VAT is paid is provided in advance to allow customs authorities to check it is valid when importing goods;
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requests for records and administrative enquiries made by EU countries to taxable persons will be coordinated by the country of identification*.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 1 January 2012.

BACKGROUND

For more information, see:

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VAT and administrative cooperation (European Commission).

KEY TERMS

Country of identification: the country in which the taxable person is registered for using the mini one-stop shop* and where it declares and pays the VAT in the country (or countries) of consumption.

MAIN DOCUMENT

Council Regulation (EU) No 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax (OJ L 268, 12.10.2010, pp. 1–18)

Successive amendments to Regulation (EU) No 904/2010 have been incorporated in the original text. This consolidated version is of documentary value only.

2. Legislative text

Council Regulation (EU) No 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax (recast)

Contents

1.

Summary of Legislation

2.

Legislative text