Value added tax fraud on imports : the EU's financial interests are insufficiently protected under simplified import customs procedures; Special report 08, 2025

Our audit assessed whether the EU's financial interests and the single market are protected effectively against VAT fraud on imports when simplified import customs procedures are used. We identified gaps and inconsistencies in the EU regulatory framework and serious weaknesses in how member states check that the correct amount of VAT due is collected. Many of these weaknesses are due to the challenges customs and tax authorities face in cooperating across member states. We recommend that the Commission, based on an in-depth analysis, proposes changes to the regulatory framework aiming at a more consistent application of simplified import customs procedures across member states, analyse the benefits for mandatory transport evidence of customs procedure 42 consignments, and require more effective cooperation between national customs and tax authorities. ECA special report pursuant to Article 287(4), second subparagraph, TFEU.