Good question and I had to Google the answer. Until now enforcement was apparently lackluster but EU is tightening up: "As of January 2024, Payment Service Providers (PSPs) have a new role in tackling VAT fraud. They need to report cross border payments to CESOP (the Central Electronic System of Payment Information), a large digital hub. This disclosure is specifically for the purpose of combating tax fraud. It’s focused on business activity, doesn’t record payment reasons, and has strong privacy restrictions." https://www.paddle.com/blog/eu-vat-compliance-for-us-softwar...

This is a good link from the article: https://vat-one-stop-shop.ec.europa.eu/system/files/2021-07/...

EU VAT law is very well documented, compared to say German income tax law. It's actually fun to understand if one can use such a word here.