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EU to push Anti-VAT fraud quick reaction mechanism


EU to push Anti-VAT fraud quick reaction mechanism

Following the recent EU summit, the European Commission is looking to introduce the proposed temporary VAT reverse charge on key goods to help reduce EU VAT fraud.  The goods under discussion include mobile phones, computer chips and other high-value, small sized goods prone to cross-border VAT fraud.  It has also been extended to the provision of services such as gas, electricity and large-scale farm crops.

The move comes as the EC indicates that it will not extend the UK’s VAT reverse charge derogation on these goods.

The measure enable states to introduce the reverse charge at short notice –‘quick reaction mechanism’ - if it suspects fraud in the industry.

The aim is to have the measure agreed at the next EU ministers meeting in Luxembourg on 21 June 2013.  It is part of a range of measures agreed to help reduce and eliminate tax evasion.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.