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Feed/CNS2009/0139(CNS)Finance & Budget

Amendment: Reverse charge mechanism for fraud-prone goods/services (Directive 2006/112/EC)

COMCMT1R-EP1R-C2R-EPCNCADO
Updated 200mo ago
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This procedure proposes temporary changes to how Value Added Tax (VAT) is collected for specific goods and services prone to fraud. By shifting the responsibility for paying VAT from the supplier to the customer (the reverse charge mechanism), the EU aims to prevent 'missing trader' fraud and other tax evasion schemes.

This primarily affects businesses trading in high-risk sectors. Companies purchasing these specific goods or services will now be responsible for reporting and paying the VAT directly to their national tax authorities.