Summary
- The European Commission proposes extending the optional reverse charge mechanism in Article 199a of the VAT Directive until 30 June 2030.
- The proposal would also extend the Quick Reaction Mechanism in Article 199b, which allows a rapid temporary response to sudden and massive VAT fraud.
- The mechanisms currently expire on 31 December 2026; the proposal changes their end dates without altering their substantive scope.
Extended article
The European Commission has presented COM(2026) 515, proposing to keep two temporary VAT anti-fraud instruments available until 30 June 2030. The optional reverse charge mechanism allows Member States to make the taxable customer liable for VAT on specified fraud-sensitive supplies. The Quick Reaction Mechanism permits a temporary reverse charge response in cases of sudden and massive fraud, subject to the applicable EU procedure.
Both mechanisms are currently due to expire on 31 December 2026. The proposed extension is intended to preserve existing anti-fraud tools during the transition toward the digital reporting framework introduced by VAT in the Digital Age. The measure remains a legislative proposal and requires adoption through the applicable EU procedure.
External sources: European Commission proposal on EUR-Lex | European Parliament implementation study
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