EU states push wider reverse charge VAT fraud controls

• The European Commission has proposed extending the optional Article 199a domestic VAT reverse charge until 30 June 2030, mainly to bridge the gap until ViDA digital reporting rules begin for intra-EU transactions on 1 July 2030.
• Austria, Czechia and Germany want the reverse charge scope widened to include certain real estate transactions, motor vehicles, national greenhouse gas emission allowances, and certain cryptoasset transactions.
• If adopted, Member States could apply domestic reverse charge to these additional fraud-prone transactions without needing individual VAT derogations.
• The proposal highlights a policy tension: ViDA’s faster digital reporting may improve fraud detection, but governments may still want reverse charge as a direct anti-fraud tool that prevents VAT collection abuse in the first place.

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.

---

---