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Reverse charging to prevent VAT fraud

This page is available for discussion relating to Reckon's December 2006 article on the UK, German and Austrian requests under the Sixth VAT directive for permission to implement reverse charging as a way of preventing MTIC/carousel fraud.

Update: 29 September 2009

The European Commission has adopted a proposal to allow all Member States to apply reverse charging to the supplies of five types of goods and services. The proposal expands the scope of the approval granted in 2007 to the UK (for mobile phones and computer chips) by adding GHG emissions permits, perfumes and some precious metals to the list of goods and services covered by reverse charging.

Individual Member States have already taken steps in recent months to tackle MTIC fraud in the supply of emissions permits. The Netherlands introduced a targeted optional reverse charge system. The UK and France have exempted the supplies of permits, with the right to deduction in the UK and without in France.

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Last changed by Shankar at 7:33 PM on Friday 9 July 2010.

Reference for this page:
Reckon Open "Reverse charging to prevent VAT fraud" 2010-07-09T19:33:15