The European Court of Auditors has pointed out regulatory gaps and weaknesses in the management of simplified customs regimes for the importation of goods, emphasizing how these shortcomings promote VAT fraud. In a detailed report, the institution calls on the European Commission to take more decisive measures to protect the Union's financial interests, improving transparency and cooperation among Member States. In detail, the report by the European Court of Auditors analyzes the effectiveness of the measures adopted by the European Union to protect its financial interests from VAT fraud. The focus of the investigation was on simplified customs regimes for imports, in particular customs procedure 42 (CP 42) and the Import One-Stop Shop (IOSS), tools introduced to facilitate intra-EU trade. Context and scale of the phenomenon According to data provided by the European Commission, in 2022, Member States lost approximately €89 billion due to VAT fraud. These losses include fraud in intra-community trade and imports, which represent a significant threat to the EU budget. The CP 42 regime, which allows the importation of goods exempt from VAT in the destination country, and the IOSS, designed for distance sales, were the main subjects of analysis. The report highlights that, from 2021 to 2023, goods imported through CP 42 accounted for a value ...