Brussels, 19/06/2013 (Agence Europe) - In Luxembourg on Friday 21 June, the Ecofin Council is to adopt a series of measures for countering value added tax (VAT) fraud more effectively.
The compromise mooted by the Irish Presidency of the EU Council amends the following legislative proposals: - a directive establishing a rapid response mechanism (RRM) allowing member states in the event of sudden and massive VAT fraud to apply immediate measures with the Commission's approval; - and a directive allowing states to be exempt from VAT regulations by applying, on an optional and temporary basis, with a limited list of sectors, a reverse-charge procedure (the beneficiary of goods and services is liable to VAT instead of the supplier).
In order to meet German and British concerns, the compromise provides for: - RRM to be applied solely until end 2018 (any renewal having to be endorsed by the Council); - a Commission stance to be taken within a short lapse of time taking the opinions of other member states into account, when a member state wants to resort to RRM; - the reverse-charge mechanism to be possibly applied to services and IT and telecommunications material, as well as to the provision of gas and electricity; - and for the two mechanisms to be temporary and exceptional and only applicable until end 2018.
The Ecofin Council will adopt a draft regulation amending the VAT rules relating to the place where certain services are provided (telecommunications, radio-broadcasting, electronic services, real estate services, and the distribution of tickets for leisure activities). It is likely to hold a brief debate on the proposal to extend coverage of the directive to administrative cooperation on direct taxation (2011/16/EU) to other kinds of revenue as of 2015 (see EUROPE 10865). (FG/transl.jl)