Press Release: Council approves measures to tackle VAT fraud schemes

The Council on 22 July 2013 adopted two directives that will enable member states to better combat VAT fraud, facilitating rapid reaction and allowing a specific measure to tackle so-called carrousel fraud.

The two directives adopted on 22 July 2013 amend directive 2006/112/EC on the EU's common VAT system:
– One is aimed at enabling immediate measures to be taken in cases of sudden and massive VAT fraud ("quick reaction mechanism");
– The other allows member states to apply, on an optional and temporary basis, a reversal of liability for the payment of VAT ("reverse charge mechanism"), with the aim of closing off certain types of known fraud, in particular carousel schemes.

• Primary Source

ESO: Background information: VAT: Commission proposes new instrument for speedy response to fraud http://www.europeansources.info/record/press-release-vat-commission-proposes-new-instrument-for-speedy-response-to-fraud/

ESO: Background information: Economic and Financial Affairs Council, Brussels, 14 May 2013 http://www.europeansources.info/record/economic-and-financial-affairs-council-14-may-2013/

ESO: Background information: Council conclusions on tax evasion and tax fraud http://www.europeansources.info/record/press-release-council-conclusions-on-tax-evasion-and-tax-fraud/

ESO: Background information: Council agrees measures to combat VAT fraud http://www.europeansources.info/record/press-release-council-agrees-measures-to-combat-vat-fraud/

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