European compact against tax fraud—VAT solidarity and new dimension of effective and coherent tax data transfer

Abstract

The aim of this article is to present a new concept and scope of exchange of VAT information/data and tax technologies between EU Member States, better designed to combat VAT fraud. In the authors’ view, bilateral agreements on strengthened cooperation are a more effective solution—at least in the short and medium term—than EU legislation. Bilateral agreements in the field of VAT already exist between some EU Member States and work effectively for the better and more structured exchange of tax data. Effective cooperation based on bilateral agreements/intergovernmental agreements could positively influence EU legislation and serve as an effective sandbox for the introduction of new common solutions for the EU legislator.