Regulatory updates - EU

Following investigations by the European Public Prosecutor’s Office (EPPO), the European Commission recognizes that the main challenges related to the VAT gap lie in cross-border trade between Member States. Estimates indicate an annual loss in VAT revenue from fraudulent intra-Community trade of between EUR 12.5 billion and EUR 32.8 billion, according to 2023 Eurofisc (the European network of national VAT anti-fraud officials) estimates.

The proposal aims to address these challenges by enabling increased cooperation and data sharing, allowing EU anti-fraud institutions and the Eurofisc network to detect complex, cross-border fraud schemes more effectively.

Need for collaborative anti-fraud detection and data access

Currently, the European Public Prosecutor's Office (EPPO) and the European Anti‑Fraud Office (OLAF) obtain VAT information and cooperate with national tax authorities under different legal frameworks, means and conditions.

The proposal allows for

• Immediate access to VAT data for EPPO and OLAF to streamline investigations.
• Real-time intelligence sharing between EU agencies and national authorities via Eurofisc.
• Leveraging the VAT in the Digital Age (ViDA) package to modernize fraud detection.

Next steps

The proposal will be submitted to the European Parliament and Council for adoption.

Pagero – a ViDA-ready service-provider

The measures highlight the increasing importance of accurate VAT reporting across the EU. While they are not targeted at ordinary businesses, they underline the need to prepare for upcoming e-invoicing and reporting requirements. Learn more about how Pagero can help businesses comply with ViDA’s e-invoicing and digital reporting requirements here.

Since 2020, the eFTI regulations initiative has continued to advance. For detailed updates and full timelines, please see the official EU dedicated pages. 

What is new now is that on 6 November 2025, the EU Commission has released a new Implementing Regulation, laying down detailed specifications regarding the functional requirements for eFTI platforms in accordance with Regulation (EU) 2020/1056 of the European Parliament and of the Council and defines the functional and technical requirements that eFTI platforms to enable the secure and harmonized exchange of regulatory fright data in electronic form. 

Once implemented, the eFTI framework will facilitate digital information exchange between operators and the relevant authorities across the EU. 

The European Commission (EC) has been pushing hard to achieve harmonization, facilitate trade, and reduce compliance burdens for both governments and businesses. Initiatives like the ViDA Directive and eFTI Regulations are just the start, the EC is setting the stage for a major shift in the EU's future regulatory framework.

The Commission reforms extend to a new EU Customs framework designed to make customs fit for a greener, more digital era and to strengthen a safer, more competitive Single Market. The proposal includes establishing a new EU Customs Authority to oversee an EU Customs Data Hub, which will serve as the engine of the new system and will replace the existing fragmented national IT systems, enabling a unified, data-driven EU approach to risk management and customs processes across the Union.

On 20 October 2025, the European Commission opened the door for Member States to apply to host the future EU Customs Authority (EUCA). Member States can submit their applications within six weeks of the launch. The received applications will undergo a general assessment by the Commission and will be made publicly available on a dedicated website.

Why does this matter?

Because the EUCA is a key piece of the Customs Reform package. These changes will make trading across Europe faster and simpler for businesses, while giving customs authorities the tools they need to do their jobs better. In the end, everyone will benefit from simpler, smarter customs systems.