EU tightens VAT fraud enforcement: what does this mean for car exporters?

Novatrade24 update: EU gives enforcement authorities direct access to your VAT data

New: Regulation (EU) 2026/1743 enters into force on 16 August

From 16 August 2026, the way European enforcement authorities look at cross-border trade will change fundamentally. Regulation (EU) 2026/1743 will enter into force and give the EPPO (European Public Prosecutor’s Office) and OLAF (European Anti-Fraud Office) direct access to cross-border VAT data, including data from Eurofisc (the decentralised network established by the EU Member States to facilitate the rapid multilateral exchange of targeted information on VAT fraud), and eventually VIES as well. Eurofisc will henceforth be required to share relevant information and analyses concerning suspected VAT fraud when requested.

What exactly is changing

EPPO and OLAF will have direct, independent access to VAT data on cross-border transactions, rather than relying on data being passed on by Member States. Eurofisc will be required to provide relevant information and analyses concerning suspected VAT fraud when requested. Access to VIES data will follow later, but the foundation is being laid now. There will be a single central access point for targeted searches, with established rules for data protection and logging.

Why this matters to you

According to the European Commission, VAT carousel fraud, often involving “missing traders”, costs Member States and the EU budget between €12.5 billion and €32.8 billion each year. This regulation expands and strengthens automated controls on VAT fraud. That has a direct impact on auto exporters. International car trading is a sector where this type of fraud can thrive: chains of buyers and intermediaries who disappear once the VAT should have been paid. Before you know it, you may unintentionally become part of such a chain.

Faster and more efficient investigations

Through smarter cooperation, enforcement authorities will identify irregularities in export chains faster than ever. Even when the error is not yours, but occurs further down the chain. Investigations by the EPPO and local tax authorities will therefore become more efficient, targeted and effective. We therefore expect more targeted questions or investigations into suspicious transactions over time.

Consistent compliance

Consistent documentation of export files is becoming even more important as a result of this development. Irregularities in your own export documentation can work against you if you happen to be part of a VAT fraud chain. One transaction documented one way and another differently: such an inconsistent pattern can count against you. It goes without saying that authorities expect export files to be documented consistently. All transactions must therefore be documented in the same, consistent way. And every file must be complete and meet the current requirements, not those of last year.

How does Novatrade24 help you with this?

Click2Comply is designed to eliminate precisely the risk of an inconsistent or incomplete export file. Automated KYC/KYB checks, VAT and anti-money-laundering risk detection, and an audit-ready export file for each transaction ensure a complete and consistent export file. During an inspection or audit, you do not have to worry about your export files.

“Compliance is not a brake on entrepreneurship. It is the foundation for doing business sustainably and with confidence.”

Get started

Would you like to know what this regulation specifically means for your export chain and current way of working, or discuss how we can help take this burden off your shoulders? Contact Tom Hessing (thessing@novatrade24.com).

Tom Hessing: +31 6 54 34 29 91 Novatrade24: +31 73 820 00 19 Source: Council of the EU, press release 5 May 2026 (consilium.europa.eu) and VATupdate, 1 August 2026 (vatupdate.com)