- MTIC (Missing trader intra-community) VAT fraud causes €12.5-32.8 billion in annual EU losses, often involving organized crime.
- The reverse charge mechanism (Articles 199a and 199b) shifts VAT payment responsibility to the customer, reducing supplier fraud.
- Article 199a has proven effective in targeted sectors; Article 199b has not been used due to strict criteria.
- Alternatives under consideration include digital reporting, better enforcement cooperation, and broader VAT reforms.
- The European Parliament supports extending the reverse charge mechanism but calls for a thorough assessment before prolonging it beyond 2026.
Source: europarl.europa.eu
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "European Union"
- New SDEU Ruling May Allow Earlier VAT Deduction Without Waiting for Invoice Receipt
- Input Tax Deduction and Gratuitous Value Transfers: New BMF Guidelines Effective from 2026
- Parcels from outside the EU 5 euros more expensive from November due to extra import duties
- EU Financial Sector Tax Reform: Divided Parliament Debates VAT, IPT, and FTT Amendments
- Online workshop – Reality check on the revision of eInvoicing Directive (April 27)
