EU to push Anti-VAT fraud quick reaction mechanism
Following the recent EU summit, the European Commission is looking to introduce the proposed temporary VAT reverse charge on key goods to help reduce EU VAT fraud. The goods under discussion include mobile phones, computer chips and other high-value, small sized goods prone to cross-border VAT fraud. It has also been extended to the provision of services such as gas, electricity and large-scale farm crops.
The move comes as the EC indicates that it will not extend the UK’s VAT reverse charge derogation on these goods.
The measure enable states to introduce the reverse charge at short notice –‘quick reaction mechanism’ – if it suspects fraud in the industry.
The aim is to have the measure agreed at the next EU ministers meeting in Luxembourg on 21 June 2013. It is part of a range of measures agreed to help reduce and eliminate tax evasion.