As the Definitive VAT System reforms go on hold, the EU has extend the option to use reverse charge to reduce compliance obligations and fight fraud EU Finance Minister agreed this month to extend the optional reverse charge until 31 December 2026. This is partially
Countries shift VAT reporting from suppliers to customers to reduce VAT fraud – General & Domestic Reverse Charge by country In attempt to reduce the VAT Gap – the shortfall of VAT revenues compared to expected receipts – EU and other states apply the Reverse
Rollover of reverse charge to fight fraud until December 2025 The European Commission is proposing to allow member states to continue to use optional VAT reverse charge measure to fight fraud. It intends to rollover the existing measures until 31 December 2025. This includes application
New German government rekindles interest in VAT regime reforms shifting the place of taxation on B2B intra-community supplies of goods to destination-based taxation The new German coalition government has committed to supporting a stranded EU VAT regime reform which would shift the obligation to charge
22nd January 2022 – Non-residents may no longer charge VAT on local B2B supplies or VAT register – aim is to cut VAT fraud via compulsory Article 194 VAT Directive Slovenia’s National Assembly has completed this week its approval of the adoption of Article 194
Grand plan may now fall to side as VAT in the Digital Age reforms progress The proposed grand solution to tackle over €50billion in EU VAT fraud, the Definitive VAT System, is in trouble. The plan to switch from an origin to destination-based VAT on
Ends withholding tax requirement The Russian Federal Law has been amended from 1 October 2021 to introduce the Value Added Tax reverse charge on supplies made by non-residents to Russian businesses within the Russian Federation. The changes were included in Federal Law No. 305-FZ from
The Portuguese Autoridade Tributária e Aduaneira tax office has extended the application of the Value Added Tax domestic reverse charge for non-resident businesses and B2B supplies of goods or services. This significantly reduces the use cases where foreign suppliers have to charge Portuguese VAT –
Cyprus is to extend the application of the domestic reverse charge to mobile phones, CPU’s, games consoles, laptops and similar products. This will come into effect from 1 October 2020. Reverse charge to block missing trader fraud The measure obliges resident or non-resident providers of
Non-resident become subject to reverse charge on B2B; customer must report transaction Croatia is to modify the rules on applying the reverse charge on goods and services for non-residents from 1 January 2019. Currently, any non-established businesses with or without a Croatian VAT number must
