Czech EU VAT fraud reverse charge call
- European News
- Jan 20, 2016 | Richard Asquith
The Czech Republic Finance Minister, Andrej Babiš, is to re-attempt to have fellow EU ministers back a plan to extend the anti-VAT fraud reverse charge extended across a range of products.
The Czech Republic, along with four other Central and Eastern European countries attempted to broaden the use of the domestic reverse charge from a narrow base including: mobile phones, laptops, computer chips, carbon trading licenses and energy trading. But the European Commission rejected the proposal last year, fearing it would undermine the whole stage-collection principle of the EU VAT regime.
However, the Czechs believe the problem of missing trader fraud is so acute, that minister should review the status. They estimate annual VAT fraud losses at over €170 billion per annum.
Babiš will raise this issue at this Friday’s EU finance ministers’ conference in Brussels.