A reverse-charging mechanism under which VAT would be paid by the end consumer could help tackle VAT fraud but would be expensive for companies if it is only applied in some countries and only applied temporarily, explains Gerhard Huemer of the UEAPME, which represents small and medium-sized companies. He was speaking on Wednesday 31 August at a public hearing at the European Parliament on the future of the VAT system.
Reverse-charging "can contribute to reducing the administrative burden...