With 605 votes in favour, 2 against and 27 abstentions, the European Parliament largely adopted the report by Markus Ferber (EPP, Germany) on extending the period of application of the optional reverse charge mechanism to supplies of certain goods and services susceptible to fraud and of the rapid reaction mechanism against VAT fraud.
Revising the common system of value added tax (VAT), this text aims to extend this mechanism, which was due to expire on Thursday 30 June 2022, until Wednesday 31 December 2025. In particular, it allows Member States to initiate, under certain strict conditions, an accelerated procedure to put in place the reverse charge mechanism and thus respond more adequately and effectively to sudden and massive fraud.
The text will lapse if negotiations on the final VAT system are concluded before the new deadline. This extension is also linked to the preparation and adoption of a Commission proposal on VAT in the digital age. Anticipated with interest by the French Presidency of the EU Council (see EUROPE 12905/15), VAT in the digital age is still being worked on by the Commission, as the call for contributions, launched on Thursday 20 January, will close on Thursday 5 May.
To read the report: https://aeur.eu/f/1h6 (Original version in French by Anne Damiani)