The aim of mutual assistance is to improve administrative cooperation between Member States.
Administrative cooperation concerns the tax and customs administrations of EU Member States cooperating with one another to share information. Close cooperation between these bodies is vital to detect and reduce tax fraud.
This type of fraud costs the Member States of the European Union millions of euros annually. In addition, it distorts competition for honest traders and undermines confidence in the European taxation systems. Very simply, the current system does not efficiently and effectively combat this problem.
The Commission has thus launched the following initiatives in several areas of taxation:
For further information please read the most recent Commission report on the use of administrative cooperation arrangements in the fight against VAT fraud.