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EU Member States Call for Broad Introduction of Domestic VAT Reverse Charge Mechanism — Orbitax Tax News & Alerts

A group of five EU Member States is calling for the broad introduction of the VAT reverse charge mechanism for all domestic transaction exceeding EUR 10,000 in order to reduce instances of fraud. Currently the reverse charge mechanism is often used for cross border transactions, but its use domestically is limited by the European Commission to specific sectors where fraud is clearly prevalent and other solutions to counter fraud are not available.

The five Member States include Austria, Bulgaria, Hungary, Slovakia and the Czech Republic. Germany is expected to join the group as well.