The European Union’s Transaction Network Analysis services is a tool shared by member states to gather and compare VAT transactional data to help detect fraud. It was launched by Belgium with other Benelux states in 2014 as a pilot, and grew to ten states by 2016. It is now used voluntarily by most member states since May 2019 as part of Eurofisc work.
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Member states share data to identify missing trader fraud
TNA is connected to all the participating tax authorities tax return data, and seeks to use data mining tools to quickly identify cross-border missing trader fraud – including carousel fraud.
TNA is based on automated data mining of data provided by companies in their VAT returns. It includes building connectors between member states’ tax IT platforms to share transaction data and reporting in near real time. It monitors deviations in purchases and sales between vendors and purchasers, and other discrepancies between disclosures in the return.
It includes building connectors between member states’ tax IT platforms to share transaction data and reporting in near real time. It monitors deviations in purchases and sales between vendors and purchasers, and other discrepancies between disclosures in the return.
EU VAT in the Digital Age reforms include a channel for harmonised Digital Reporting Requirements (DRR) and Continuous Transaction Control (CTC) by EU states. This grew from the 2020 Tax Packageproposals for a fairer and more efficient EU tax regime.
