European Commission Proposes Extension of VAT Reverse Charge Mechanism to Combat EU Intra-Community Fraud

The European Commission Feb. 10 proposed an extension of the VAT reverse charge mechanism to combat EU intra-community fraud. The proposal includes measures that would amend the EU VAT directive to extend the application period to Dec. 31, 2025, for: 1) the optional VAT reverse charge mechanism in relation to supplies of specific goods and services susceptible to fraud; and 2) use of the Quick Reaction Mechanism (QRM) against VAT fraud. [European Union, European Commission, 02/10/22]

Reference:
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