The EU has been actively strengthening its enforcement cooperation to combat tax fraud through various measures and initiatives:

1. Updating the EU List of Non-Cooperative Jurisdictions

- The EU regularly updates its list of non-cooperative jurisdictions for tax purposes to promote tax transparency and fair taxation globally. As of February 18, 2025, the list includes 11 third-country jurisdictions: American Samoa, Anguilla, Fiji, Guam, Palau, Panama, the Russian Federation, Samoa, Trinidad & Tobago, US Virgin Islands, and Vanuatu. Additionally, 8 jurisdictions have committed to improving their tax governance frameworks and are registered in the list of cooperative jurisdictions. This process provides a framework for dialogue, outreach, and cooperation between the EU and international partners, ensuring that the list remains relevant and accurate.

2. Enhancing VAT Fraud Measures

- The EU and its Member States have implemented a range of measures to close VAT loopholes and adopted innovative digital tools to facilitate information exchange and detect fraudulent transactions. For example, the Central Electronic System of Payment Information (CESOP) helps Member States monitor cross-border payments by payment service providers, enhancing transparency and enabling faster detection of fraud.

- The European Public Prosecutor's Office (EPPO) and Eurofisc have been instrumental in dismantling major VAT fraud networks. EPPO has led investigations that resulted in the dismantling of networks responsible for billions of euros in damages. Eurofisc, a network of representatives from 27 Member States and Norway, coordinates the exchange of VAT information and assists in joint audits.

 3. Strengthening Administrative Cooperation

- The EU has strengthened administrative cooperation through agreements like the one signed with Norway on October 2, 2024. This agreement provides new cooperation tools, including the spontaneous and automatic exchange of information, assistance on administrative notifications, participation in administrative enquiries, simultaneous controls, and Eurofisc follow-up actions. These tools enhance the ability of tax administrations to combat VAT fraud and recover claims.

 4. Digitalization and Innovation

- The EU is leveraging digital tools to improve tax fraud detection and prevention. The VAT in the Digital Age (ViDA) package, proposed in December 2022, aims to make the EU's VAT system more resilient to fraud through a new real-time digital reporting system based on e-invoicing. This system will help Member States monitor transactions more effectively and reduce the risk of carousel fraud.

5. Reviewing Anti-Fraud Structures

- The European Commissioner for Budget, Piotr Serafin, is leading a review of the EU's anti-fraud structures to enhance efficiency and cooperation. This review aims to optimize the coordination between various bodies involved in combating tax fraud, such as the European Parliament, EPPO, and Eurofisc.

6. International Coordination and Support

- The EU provides technical assistance to third countries to strengthen their tax governance frameworks. This support includes helping countries improve their tools against tax abuse and ensuring compliance with international standards. The EU also works closely with international partners to ensure that tax policies and cooperation levels remain effective and credible.

The EU's efforts to strengthen tax fraud enforcement cooperation involve a combination of legislative measures, enhanced administrative cooperation, digital innovation, and international coordination. These initiatives aim to improve the detection and prevention of tax fraud, optimize the use of resources, and ensure that tax policies remain effective in a dynamic global environment.