EU: European public prosecutor's office estimates serious VAT fraud amounting to €11.5 billion

71% increase from 2022 report

71% increase from 2022 report

The European Public Prosecutor's Office (EPPO) on 29 February 2024 published its annual report for 2023 announcing the launch of 1,371 investigations during the year and €19.2 billion in overall estimated damages, with 59% of that amount or €11.5 billion linked to serious value added tax (VAT) fraud—a 71% increase from the 2022 report.

The EPPO is an independent public prosecution office of the European Union (EU). It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU. These include several types of fraud, serious VAT fraud (i.e., fraud with damages above €10 million), money laundering, corruption, etc. The EPPO undertakes investigations, carries out acts of prosecution and exercises the functions of prosecutor in the competent courts of the participating member states, until the case has been finally disposed of. Since starting its operations on 1 June 2021, EPPO has registered more than 4,000 crime reports from participating EU member states and private parties.

KPMG observation

The large amount and increase in serious VAT fraud identified by the EPPO will likely drive EU member states to further advocate for the implementation of electronic invoicing (e-invoicing) and digital reporting mandates. Tax authorities view these tools as effective means to enforce VAT obligations. Italy, being the most advanced member state in this area, recently made such an announcement. Other member states, including Belgium, France, Poland, and Spain, plan to introduce e-invoicing mandates in the near future. Additionally, at the EU level, the European Council is considering a proposal to mandate an e-invoicing mechanism for transactions within the EU, as part of the VAT in the Digital Age package. Therefore, it is not a matter of if, but when most jurisdictions will adopt the e-invoicing trend. This shift will dramatically alter VAT compliance and business processes, as tax authorities will gain direct insights into daily operations.

For more information, contact a KPMG tax professional:

Kathya Capote Peimbert |

Philippe Stephanny | 



The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.