Extension of VAT anti-fraud mechanisms

Summary

The proposal seeks to extend temporary measures used to combat VAT fraud, specifically the optional reverse charge mechanism and the Quick Reaction Mechanism, until June 2022.
10 12.11.2018
Other
economy
taxation
public finance and budget policy

Key points

  • The proposal aims to extend existing measures used to combat VAT fraud within the European Union.
  • It prolongs the option for Member States to use a reverse charge mechanism for specific goods and services that are highly susceptible to fraud.
  • It maintains the Quick Reaction Mechanism, which provides a fast-track way to tackle sudden and massive fraud cases.
  • These measures are proposed to be extended until June 30, 2022, to bridge the gap until a permanent regime for business-to-business supplies is introduced.
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