Press Release: VAT: Commission proposes new instrument for speedy response to fraud

A proposal for a Quick Reaction Mechanism (QRM), that would enable Member States to respond more swiftly and efficiently to VAT fraud, has been adopted by the Commission.

Under the QRM, a Member State faced with a serious case of sudden and massive VAT fraud would be able to implement certain emergency measures, in a way which they are currently not allowed to under VAT legislation. In this context, the proposal provides that Member States would be able to apply, within the space of a month, a "reverse charge mechanism" which makes the recipient rather than the supplier of the goods or services liable for VAT. This would significantly improve their chances of effectively tackling complex fraud schemes, such as carrousel fraud, and of reducing otherwise irreparable financial losses. In order to deal with possible new forms of fraud in the future, it is also foreseen that other anti-fraud measures could be authorised and established under the QRM.

• Primary Source

European Commission: Memo/12/609: VAT: Commission proposes new instrument for speedy response to fraud – frequently asked questions http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/12/609&format=HTML&aged=0&language=EN&guiLanguage=en

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