The European Commission to further extend the VAT reverse charge mechanism to combat intra-community fraud in the EU

The European Commission proposed to further extend the VAT reverse charge mechanism to combat intra-community fraud in the EU. The proposal involves amendments to the EU VAT legislation that would prolong the application period to 31 December 2025, for: 

1.The optional VAT reverse charge mechanism applicable to supply of specific goods and services prone to fraud. Among the specific supplies are: 

Goods 

• • mobile phones 
  • computer chips 
  • microprocessors 

• • hi-fi equipment 
  • new and used vehicles  
  • precious metals 

Services: 

• • carbon credits 
  • gas and electricity 
  • cloud computing and VoIP 
  • green energy certificates 

2. Application of the Quick Reaction Mechanism (QRM) to combat VAT fraud. 

Source: eur-lex.europa.eu

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