Norway and the EU are intensifying their cooperation to combat VAT fraud and claims recovery
The EU and Norway have signed an updated agreement on administrative cooperation in the field of VAT
The most recent agreement, an update from the 2018 original agreement, updates the EU-Norway partnership to align with the latest EU VAT legislation, ensuring that Member States and Norway can more effectively collaborate. The Storting (the Norwegian Parliament) must now give its consent to entry into force.
Norway sharing EU’s anti-fraud tools
The amended agreement focuses on information sharing, administrative cooperation, and recovery of VAT claims to prevent cross-border VAT fraud, particularly involving telecommunication, broadcasting, and electronic services. This includes the immediate and automatic exchange of information and feedback, assistance on administrative notifications, participation in administrative enquiries (PAOEs), simultaneous controls (MLCs) and Eurofisc. In the area of recovery, it includes the requests for recovery, requests for enforcement and requests for precautionary measures.
One of the critical elements of this cooperation is Norway’s participation in Eurofisc, a network facilitating real-time information exchange among tax authorities to address VAT fraud across borders. This collaboration allows Norwegian and EU authorities to detect and prevent fraud schemes quickly by leveraging shared data on suspicious activities. The agreement emphasizes confidentiality and data protection to ensure that sensitive information is handled securely, reflecting the latest EU data directives.
Additionally, the EU and Norway have agreed to enhance digital tools for combating VAT fraud. This includes the use of e-invoicing and the SAF-T (Standard Audit File for Tax), which help tax administrations access transactional data in real-time, reducing opportunities for fraudulent activities. The digitization of VAT reporting also allows for better cross-checking of information between jurisdictions, making it harder for fraudsters to exploit loopholes.
The EU and Norway’s renewed efforts to tackle VAT fraud reflect a broader trend towards international tax cooperation, emphasizing real-time data sharing, technological solutions, and enhanced regulatory alignment to secure public revenues and protect legitimate businesses from unfair competition.
Read more in our Norwegian VAT guide
