Commission receives mandate to start negotiations with Norway on administrative cooperation on direct taxation

The objective of the negotiations is to establish a cooperation framework between Member States and Norway in the field of direct taxation by extending to Norway certain provisions of Council Directive 2011/16/EU (Directive on Administrative Cooperation, DAC), thereby offering better opportunities to fight against tax fraud, evasion and avoidance. The objective is also to cooperate on tax recovery, in line with Council Directive 2010/24/EU (Tax Recovery Directive), for the mutual benefit of the Member States and Norway.

Norway is a major international partner of the EU and part of the European Economic Area (EEA) Agreement. The country has also a long-standing practice of tax cooperation with Member States in the field of Value-Added Tax (VAT), which provides a strong basis for further deepening tax cooperation.

Background

The Directive on Administrative Cooperation (DAC) is an EU legislative framework aimed at enabling cooperation between Member States in the field of direct taxation to ensure fair and effective tax collection. Introduced in 2011, it includes provisions that facilitate the exchange of information and collaboration among EU Member States to combat tax fraud, evasion, and avoidance. The DAC has been amended several times to enhance its effectiveness and scope in the face of evolving tax challenges.

The objective of the negotiations is to provide a legal basis to expand the application of certain provisions of the DAC, as amended over the years, to the relationship between Member States and Norway. Moreover, the negotiations aim to broaden the scope of tax recovery assistance between Member States and Norway to all taxes besides those already covered by the existing agreement between the EU and Norway on administrative cooperation, combating fraud and recovery of claims in the field of Value-Added Tax (VAT), concluded in 2018 and further amended in 2024.

More information

COUNCIL DECISION authorising the opening of negotiations with the Kingdom of Norway for an agreement on administrative cooperation in the field of direct taxation

EU and Norway strengthen administrative cooperation, combating fraud and recovery of claims

Directive on Administrative Cooperation (DAC)