Recently, the European Commission began consultations with Russia and Norway on administrative cooperation agreements in the area of Value Added Tax (VAT). The aim of the agreements is “to establish a framework of mutual assistance in combatting cross-border VAT fraud and in helping each country recover the VAT it is due”. The cooperation agreements would be based on the Council Regulation (EU) 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax, which currently sets the framework for such collaboration within the European Union (EU).

Increased cooperation is necessary to combat tax fraud. The Commission believes that a dialogue with the US to improve mutual cooperation in fighting fraud in the VAT and sales tax areas would also be useful.