Luxembourg steps up fight against international VAT fraud
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Luxembourg Finance Minister Gilles Roth has responded to a parliamentary enquiry by MPs Mars Di Bartolomeo and Dan Biancalana regarding the fight against cross-border VAT fraud.
According to him, Luxembourg is actively involved in international mechanisms to combat tax fraud. In particular, the country participates in Eurofisc - a European network of specialists in detecting VAT fraud, established in 2010. Within its framework, representatives of the Luxembourg Registration, Domains and VAT Administration (AED) regularly co-operate with the tax services of 27 EU countries and Norway, as well as conduct joint audits with colleagues from other countries.
The AED also works closely with the European Public Prosecutor's Office, referring cases involving possible large-scale tax fraud schemes. This is how the suspicious Luxembourg companies involved in the international fraud network mentioned by the MPs were referred to the Public Prosecutor's Office.
To strengthen control, a cooperation agreement between the AED and the Administration of Direct Taxes (ACD) was signed on 24 June 2024. It is based on the law of 19 December 2008, which regulates administrative and judicial cooperation in tax investigations. This document has enhanced the ability to exchange information between the agencies, allowing for faster detection of fraudulent schemes and more efficient investigations.
Organised tax crime is also combated under EU Regulation No. 904/2010, which provides a comprehensive set of measures to combat VAT fraud.
The Minister noted that the current legislative framework and existing mechanisms give the Luxembourg tax authorities sufficient tools to combat illegal VAT evasion schemes.
Thus, the government continues to work actively to prevent tax fraud, using international co-operation mechanisms and inter-agency information exchange to protect the financial interests of the state and the EU as a whole.
