‘ECOFIN Approves VAT Reverse Charge’

At a meeting of the Council of the EU (ECOFIN) in Luxembourg last week, agreement was reached on a number of issues in relation to the day-to-day running of an EU VAT system. In particular, the Council reached political agreement on the proposal to allow Member states facing endemic carousel fraud to apply a generalised reversal of payment of VAT liability from supplier to customer. The reverse charge may only be used by a Member state which meets certain eligibility criteria and has been authorised by the Council to use the reverse charge mechanism.

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