- ViDA’s Digital Reporting Requirements, starting in July 2030, are expected to give EU tax authorities near-real-time data on intra-EU transactions, improving detection of carousel and missing trader VAT fraud.
- Article 199a’s optional VAT reverse charge is currently due to expire as the new regime begins, while ViDA also harmonises the optional reverse charge under Article 194 from July 2028 as part of Single VAT Registration.
- Despite ViDA, Member States may resist giving up reverse charge because it prevents VAT from being collected by the supplier, removing the cash that missing traders typically abscond with.
- During the Commission review, 24 Member States said reverse charge has been useful against VAT fraud, and Austria, Czechia and Germany want its scope expanded to more fraud-sensitive transactions.
- The article suggests ViDA may improve fraud visibility but not fully replace reverse charge as a preventive anti-fraud tool, so Article 199a may not effectively end in practice.
Source: vatcalc.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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