VAT: Optional reverse charge and Quick Reaction Mechanism against fraud
This procedure aims to combat VAT fraud by updating the rules for the 'reverse charge' mechanism. This mechanism shifts the responsibility for reporting and paying VAT to the buyer rather than the seller for specific goods and services that are frequently targeted by fraudsters.
The changes primarily affect businesses trading in high-risk sectors susceptible to VAT fraud. It introduces a 'Quick Reaction Mechanism' allowing the EU to respond faster to emerging fraud schemes across member states.
Documents
Common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud
position · EN · 2026-05-07
Common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud
report · EN · 2026-05-07