The Council Regulation (EU) No 904/2010 aims to enhance administrative cooperation and combat fraud in the field of value-added tax (VAT) across EU Member States. It addresses issues of tax evasion and avoidance that negatively impact budgetary control and fair competition within the internal market. The Regulation seeks to establish effective mechanisms for information exchange among Member States, ensuring VAT compliance, particularly in cross-border transactions. Key provisions include the establishment of a central liaison office in each Member State and the promotion of electronic communication to facilitate timely data sharing.

Moreover, the Regulation introduces the Eurofisc network to strengthen multilateral cooperation and combat specific types of VAT fraud through targeted information exchange. Member States are required to adopt measures to ensure the reliability and quality of data exchanged, reinforcing tax administration efforts while respecting data protection laws. Overall, this Regulation is vital for enhancing the operational efficiency and integrity of the EU VAT system.