The directive extending the EU temporary reverse charge option and quick reaction mechanism until 30 June 2022 has been published in the EU official journal and enters into force on 2 December 2018.
The principal VAT directive contains provisions (art 199a) allowing member states to apply a temporary reverse charge for supplies listed specifically in the directive as at risk of MTIC fraud. A quick reaction mechanism (QRM) is also available in exceptional cases (art 199b), offering a faster procedure for enabling member states to apply the reverse charge for supplies not specifically listed, but in sectors where ‘sudden and massive’ fraud has occurred. These provisions are due to expire on 31 December 2018.
The European Commission presented its proposal in May for an amendment to the VAT directive to extend both provisions until 30 June 2022. The Commission reported to the Council and the EU Parliament in March on feedback received from member states and from stakeholders via the VAT expert group, which indicated that these provisions remain useful tools against VAT fraud, although the QRM special measure has never been used effectively.
The amending directive was published in the EU official journal on 12 November 2018 and will enter into force on 2 December.
See Council Directive (EU) 2018/1695 of 6 November 2018 at bit.ly/2qN3dXC.
The directive extending the EU temporary reverse charge option and quick reaction mechanism until 30 June 2022 has been published in the EU official journal and enters into force on 2 December 2018.
The principal VAT directive contains provisions (art 199a) allowing member states to apply a temporary reverse charge for supplies listed specifically in the directive as at risk of MTIC fraud. A quick reaction mechanism (QRM) is also available in exceptional cases (art 199b), offering a faster procedure for enabling member states to apply the reverse charge for supplies not specifically listed, but in sectors where ‘sudden and massive’ fraud has occurred. These provisions are due to expire on 31 December 2018.
The European Commission presented its proposal in May for an amendment to the VAT directive to extend both provisions until 30 June 2022. The Commission reported to the Council and the EU Parliament in March on feedback received from member states and from stakeholders via the VAT expert group, which indicated that these provisions remain useful tools against VAT fraud, although the QRM special measure has never been used effectively.
The amending directive was published in the EU official journal on 12 November 2018 and will enter into force on 2 December.
See Council Directive (EU) 2018/1695 of 6 November 2018 at bit.ly/2qN3dXC.
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