- Tax professionals support the reverse charge mechanism as a tool to reduce VAT fraud, especially in high-risk sectors.
- They warned EU lawmakers it should stay targeted and temporary, not become a permanent replacement for broader VAT reform.
- Concerns include added complexity for businesses and the risk of shifting fraud to other sectors or countries.
- The European Commission estimates the EU loses €128 billion annually to VAT fraud.
Source: news.bloombergtax.com
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.
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