Tax consultations: VAT – Optional reverse charge mechanism

In the context of the recent discussions on a co-ordinated strategy in the fight against VAT fraud a debate has been launched by a number of Member States on the possibility to change the VAT system substantially in order to combat VAT fraud. One of the options discussed is the possible introduction of an optional reverse charge mechanism.

On 14 August 2007 the European Commission launched a public consultation on this issue with the objective to ascertain the views and opinions of businesses on additional costs and/or benefits which the possible introduction of an optional reverse charge mechanism might cause for them.