Luxembourg is actively involved in the fight against international VAT fraud

In response to an enquiry from MPs Mars Di Bartolomeo and Dan Biancalana, Luxembourg Finance Minister Gilles Roth confirmed that the country is actively fighting cross-border VAT fraud schemes using both European mechanisms and national legislation.

One of the key tools is participation in Eurofisc, a European expert network on VAT fraud established in 2010. It includes representatives from all 27 EU states and Norway. Luxembourg is represented by staff from the Registration, Domains and VAT Tax Authority (AED) who regularly participate in meetings, exchange information with colleagues and conduct joint or synchronised audits with tax authorities in other countries.

The Ministry also confirmed that suspicious companies believed to be part of an international fraud network have been referred to the European Public Prosecutor's Office (EPPO). This is in line with the country's strategy: all cases that may indicate involvement in transnational schemes are immediately referred to the appropriate authorities.

At the national level, efforts are coordinated between the two main tax structures. On 24 June 2024, a service agreement was signed between the AED and the Direct Tax Administration, consolidating the collaboration within the framework of the law of 19 December 2008 on inter-agency and judicial cooperation. This move is intended to strengthen the joint fight against tax offences, including through data sharing and joint investigations.

The main pan-European regulation on which co-operation is based is Regulation (EC) No 904/2010, which regulates administrative co-operation and the fight against VAT fraud. The document provides member states with a range of tools to detect and suppress organised tax theft schemes.