EU Lawmakers Back VAT Reverse Charge Extension

European Union lawmakers voted Tuesday to extend the life of the “reverse charge” rule that lets EU tax authorities require buyers, rather than sellers, to collect and pay value-added tax in some circumstances until 2025.

Lawmakers voted 605 to 2 with 27 abstentions to support a proposal issued in February by the European Commission that would extend the ability of countries to apply the anti-fraud measure.

• Under the EU’s current VAT system, sellers must add VAT to their invoices at the rate of the country where goods are purchased. An exemption first agreed in 2010 allows EU countries to ...