- The Commission proposed extending the optional reverse charge mechanism and the quick reaction mechanism for VAT fraud until 30 June 2030.
- The current anti-fraud measures were due to expire on 30 June 2026; the extension gives Member States more time to fight VAT fraud while broader VAT reform is finalized.
- The reverse charge mechanism lets Member States shift VAT liability from seller to buyer in predefined high-fraud sectors.
- The quick reaction mechanism allows temporary reverse charge use in other sectors when sudden, massive fraud is detected, subject to strict conditions.
- The extension is intended to bridge the period before VIDA digital reporting rules, including mandatory e-invoicing and real-time reporting for cross-border supplies, are fully in place.
Source: taxation-customs.ec.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.
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