On 2nd October, a news release from the EU advised that the EU Council had approved a proposed Directive will allow Member States that are most severely affected by VAT fraud to temporarily apply a generalised reversal of VAT liability. This so-called generalised ‘reverse charge’ mechanism involves shifting liability for VAT payments from the supplier to the customer. The EU Commission issued the proposal in December 2016 at the request of member states particularly affected by VAT fraud. The new arrangement will apply only for domestic supplies of goods and services above a threshold of €17,500 per transaction, only up until 30th June 2022, and under very strict technical conditions. Agreement was reached at a meeting of the Economic and Financial Affairs Council. The Directive is expected to be adopted without further discussion once the European Parliament has delivered its opinion.
raytodd.blog 