Definition and Significance of EU Administrative Assistance
EU administrative assistance refers to the cross-border cooperation between authorities of the European Union (EU) member states to provide support in administrative and enforcement matters. It serves reciprocal support for the implementation and enforcement of EU regulations and national law in areas such as taxation, customs, social security, competition, or financial control. EU administrative assistance forms a cornerstone for the functioning of the internal market and for combating cross-border economic crime, tax fraud, and illegality.
Legal Foundations of EU Administrative Assistance
Primary Legal Bases
EU administrative assistance is based on various provisions of EU primary law. In particular, Article 6 of the Treaty on European Union (TEU) and Article 4(3) of the Treaty on the Functioning of the European Union (TFEU) refer to the principle of sincere cooperation (good faith). Member states are obliged to cooperate in the performance of EU tasks.
Secondary Law Provisions
The specific arrangements for EU administrative assistance are set out in numerous secondary legal acts, especially:
- Regulation (EU) No 904/2010 on the cooperation between administrative authorities in the field of value-added tax
- Directive 2011/16/EU on the cooperation between administrative authorities in the field of taxation
- Regulation (EU) No 515/97 on mutual administrative assistance in customs matters
- Regulation (EU) 2016/679 (General Data Protection Regulation, GDPR) regarding data protection in inter-authority cooperation
- Further sector-specific rules, such as in the field of social security (Regulation (EC) No 883/2004) as well as in the context of judicial cooperation (for example, European Arrest Warrant).
Areas of Application of EU Administrative Assistance
Administrative Assistance in Tax Law
A key area of application is cooperation in tax matters. The administrative authorities of the member states, in particular, support each other in the investigation, assessment, and collection of taxes and duties, for example through:
- Exchange of information on matters relevant to taxation
- Administrative assistance in the service of documents and notifications
- Support in the enforcement of tax claims within the EU
Directive 2011/16/EU provides the basis for the exchange of information – spontaneously, automatically, or upon request – between national tax authorities.
Administrative Assistance in Customs Law
In customs law, cooperation primarily serves to combat customs offences, smuggling, and VAT fraud. Regulation (EU) No 515/97 governs measures for mutual support, including:
- Transmission of relevant customs data
- Joint investigations
- Support in the recovery of import duties and other claims
Administrative Assistance in the Area of Social Security
Regulation (EC) No 883/2004 provides for coordinated cooperation among social security institutions and authorities of member states regarding social security matters. The aim is to ensure social security coverage for individuals moving within the internal market and to prevent abuse.
Judicial Cooperation and Specific Forms of Administrative Assistance
EU administrative assistance also exists outside of the classic administrative sector. Examples include:
- Die judicial cooperation in criminal matters (Framework decisions, such as the European Arrest Warrant)
- Die Administrative assistance in the service of judicial documents und
- Die Collection of evidence in civil and criminal proceedings under Regulations (EU) 2020/1783 and 2020/1784
Forms and Procedures of EU Administrative Assistance
Exchange of Information
The exchange of information is at the center of EU administrative assistance. It occurs in various modalities:
- Upon request (Request-based): An authority specifically requests information.
- Automatically (Automatic Exchange): Authorities transmit data routinely based on statutory obligations, e.g., in the context of taxation of cross-border income.
- Spontaneously (Spontaneous Exchange): Authorities transmit data without prior request if it may be relevant to another member state.
Administrative Assistance in Enforcement and Service Procedures
To ensure the enforcement of claims, EU law provides for administrative assistance in the service of official documents and in the cross-border enforcement of administrative decisions. National authorities support each other in enforcement and use legal instruments such as the European Enforcement Order procedure.
Practical Implementation and Coordination Offices
For the implementation of administrative assistance, central liaison offices (CLO) are designated. They ensure the forwarding and coordination of requests, communication, and compliance with statutory time limits.
Modern electronic systems, such as the Common Communication Network (CCN) or the Internal Market Information System (IMI), facilitate the standardized and data protection-compliant transmission of information.
Legal Protection, Grounds for Refusal, and Data Protection
Legal Remedies
Affected natural or legal persons can legally challenge measures and decisions of individual authorities. The available remedies are determined by national laws and, where applicable, supplementing Union law.
Grounds for Refusal
Administrative assistance is not absolute. Authorities may refuse support when:
- Providing an answer would be incompatible with the public order of the requested state
- The information request would require a disproportionate administrative effort
- Transmission of information would violate national data protection rules or jurisdictional requirements
The exact requirements are stipulated by the individual EU regulations and directives.
Data Protection and Official Confidentiality
Information exchanged in the context of administrative assistance is subject to the protection of personal data and official secrecy. The General Data Protection Regulation (GDPR) and specific data protection provisions arising from EU secondary law must be observed. Transmitted information may only be used for the purpose of the specific assistance and in the prescribed procedures.
Significance and Objectives of EU Administrative Assistance
EU administrative assistance is a central tool to strengthen the integrity and functionality of the internal market. It allows for the consistent enforcement of EU and national law, reduces legal grey areas and hampers tax evasion, benefit fraud, and other cross-border offences. The continual development of legal and technical frameworks enhances the efficiency and transparency of inter-authority cooperation within the European Union.
Frequently Asked Questions
Which legal foundations regulate EU administrative assistance in tax law?
The legal foundations for EU administrative assistance in tax law are based in particular on Directive 2011/16/EU on the cooperation of administrative authorities in the field of taxation (so-called Administrative Cooperation Directive, DAC), which has been amended and expanded several times (e.g., through DAC6 regarding cross-border tax arrangements). It requires EU member states to exchange tax-relevant information with each other automatically, upon request, or spontaneously. This framework is supplemented by EU Regulation 904/2010 on cooperation in the field of value-added tax as well as sector-specific rules, for example for excise duties. EU regulations take precedence over national law and thus ensure uniform application throughout the European Union. In addition, relevant provisions of the General Data Protection Regulation (GDPR) must be observed when transmitting personal data.
Under what circumstances does administrative assistance take place between EU member states?
Administrative assistance must generally be provided in accordance with the relevant EU legal acts if the requesting member state can demonstrate a legitimate tax interest and the request is sufficiently specific. Among other things, it is required that the matter be definite and of significant relevance within the scope of tax legislation, and that the necessary information is available or obtainable within the requested state’s tax administration. Administrative assistance is to be denied if it would result in conduct that is not permitted under the law of the requested state, or where professional secrecy, public order, or confidentiality are concerned. The directives also provide for specific exceptions, for example, when the requested state does not itself require the information for tax purposes or if the effort to obtain the information would be disproportionate to its value.
To what extent is data exchanged in the context of EU administrative assistance?
Within the framework of EU administrative assistance, information is transmitted to varying extents depending on the form of exchange. The automatic exchange includes, among other things, data on cross-border interest and dividend income, account and financial information, tax rulings, cross-border tax arrangements (DAC6), and real estate ownership. Spontaneous information exchange occurs when a tax authority receives information in its area of activity that may be relevant for another member state. Exchange upon request happens in individual cases, such as in the investigation of specific tax offences or for clarifying specific issues. The transmitted data are always subject to strict requirements regarding accuracy, completeness, and confidentiality.
What legal protection exists in the process of EU administrative assistance?
Legal remedies are available both to the affected person and to third parties whose rights may be affected by the transmission of data. However, EU law does not in every case grant an immediate right to prevent the transmission of information. In Germany, for example, taxpayers can generally object to the transfer of their data and, if necessary, lodge an appeal before the tax courts. The lawfulness of the action is often only reviewed subsequently in administrative court proceedings, particularly assessing aspects such as proportionality, data protection, and legal certainty. According to Art. 25 of the Administrative Cooperation Directive, the right to take legal action against measures or decisions of the requested authority under national procedural law remains unaffected.
Are there deadlines that must be met within the framework of EU administrative assistance?
Yes, the relevant EU legal acts lay down concrete deadlines for fulfilling information requests as well as for automatic information exchange. According to Art. 12 of Directive 2011/16/EU, the requested authority must respond to written information requests as quickly as possible, but at the latest within six months of receipt of the request. If all information is already available to the requested authority, the reply must be given within two months. Deadlines for automatic information exchange vary – financial institutions, for example, under DAC2 (implementation of CRS), must transmit information for the previous year no later than 30 June of the current year. If deadlines are not met, EU law primarily requires close coordination and continuous notification of reasons for delay.
What is the significance of confidentiality and data protection in EU administrative assistance?
Confidentiality and data protection play a paramount role within the context of EU administrative assistance. Transmitted information may only be used for tax purposes and is subject to the same confidentiality standards as national tax data. Where special professional or commercial secrets are affected – for example, information from tax advisers or lawyers – exceptions apply. The General Data Protection Regulation (GDPR) also applies; affected individuals are generally entitled to information about stored and transmitted data relating to them, insofar as this does not compromise the purpose of the administrative assistance. In addition, there are strict requirements for the sharing of received data with authorities outside the tax sector or with third countries.
What sanctions may be imposed in the event of inadequate administrative assistance?
The EU relies on a system of mutual monitoring and supervision of administrative assistance rules. If a member state fails to comply with its cooperation obligations, or does so inadequately, the states concerned may refer the matter to the European Commission. The Commission examines infringements and may, where appropriate, initiate infringement proceedings, which may ultimately result in financial sanctions – such as fines. The aim is the effective enforcement of administrative assistance obligations and the strengthening of mutual trust between member states in the common market.
