BETA


2018/0150(CNS) Common system of value added tax (VAT): period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead ECON PIETIKÄINEN Sirpa (icon: PPE PPE) SZANYI Tibor (icon: S&D S&D), SWINBURNE Kay (icon: ECR ECR), CORNILLET Thierry (icon: ALDE ALDE), SCOTT CATO Molly (icon: Verts/ALE Verts/ALE)
Lead committee dossier:
Legal Basis:
TFEU 113

Events

2018/11/12
   Final act published in Official Journal
Details

PURPOSE: to amend Council Directive 2006/112/EC on the common system of VAT in order to combat fraud affecting certain supplies of goods and services and to assist Member States in dealing with sudden and massive fraud liable to lead to considerable and irreparable financial losses.

LEGISLATIVE ACT: Council Directive (EU) 2018/1695 amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud.

CONTENT: Article 199a of Council Directive 2006/112/EC (the VAT Directive) allows Member States to provide that the person liable for VAT due on supplies listed in that Article is the taxable person receiving the supply concerned (the ‘reverse charge mechanism’) in order to promptly tackle the problem of the missing trader fraud in intra-Community trade (MTIC). Member States may apply this mechanism until 31 December 2018 and for a minimum period of two years.

As these two measures were due to expire on 31 December 2018, Member States would have been deprived of an efficient tool to combat VAT fraud.

This amendment to the VAT Directive extends until 30 June 2022:

- the possibility for Member States to apply the reverse charge mechanism to combat existing fraud affecting the supply of goods and services referred to in Article 199a(1) of the VAT Directive, and

- the possibility of using the Quick Reaction Mechanism (QRM) to combat fraud.

The QRM special measure shall be subject to appropriate control measures by the Member State with respect to taxable persons who supply the goods or services to which that measure applies, and shall be for a period not exceeding nine months.

A Member State wishing to introduce a QRM special measure shall send a notification to the Commission using the standardised form and at the same time send it to the other Member States.

Once the Commission has all the information it considers necessary for appraisal of the notification referred to in the first subparagraph of paragraph 2, it shall notify the Member States thereof. Where it objects to the QRM special measure, it shall produce a negative opinion within one month of that notification, and shall inform the Member State concerned and the VAT Committee thereof. Where the Commission does not object, it shall confirm this in writing to the Member State concerned and to the VAT Committee within the same time period. The Member State may adopt the QRM special measure from the date of receipt of that confirmation.

ENTRY INTO FORCE: 2.12.2018.

2018/11/06
   EP/CSL - Act adopted by Council after consultation of Parliament
2018/11/06
   EP - End of procedure in Parliament
2018/11/06
   CSL - Council Meeting
2018/10/03
   EP - Results of vote in Parliament
2018/10/03
   EP - Decision by Parliament
Details

The European Parliament adopted by 615 votes to 9 with 43 abstentions, under a special legislative procedure (consultation), a legislative resolution on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud.

Parliament approved the Commission proposal without amendments.

The proposal aims to extend until 30 June 2022 : (i) the possibility for Member States to apply the reverse charge mechanism to combat existing fraud affecting supplies of goods and services included in Article 199a of the VAT Directive and (ii) the possibility to use the Quick Reaction Mechanism to fight sudden and massive fraud.

Documents
2018/10/02
   EP - Debate in Parliament
2018/09/10
   EP - Committee report tabled for plenary, 1st reading/single reading
Details

The Committee on Economic and Monetary Affairs adopted, under the consultation procedure, the report by Sirpa PIETIKÄINEN (EPP, FI) on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud.

The committee recommended that the European Parliament approve the Commission proposal without amendments.

The purpose of this proposal is to prolong: (i) the possibility for Member States to apply the reverse charge mechanism to combat existing fraud in supplies of goods and services included in Article 199a of the VAT Directive and (ii) the possibility to use the Quick Reaction Mechanism (QRM) to combat fraud.

The purpose of the measures foreseen in Articles 199a and 199b is to allow Member States to quickly tackle problems of the Missing Trader Intra-Community (MTIC) fraud. The measures included in Articles 199a and 199b of the VAT Directive have been useful as temporary and targeted measures. Their expiration on 31 December 2018 would deprive Member States of an efficient tool to fight fraud.

It is therefore proposed to prolong the measures included in Articles 199a and 199b until 30 June 2022, the date on which the definitive regime for intra-Union B2B supplies of goods should enter into force.

Documents
2018/09/07
   EP - Vote in committee
2018/07/11
   EP - Committee draft report
Documents
2018/06/20
   EP - PIETIKÄINEN Sirpa (PPE) appointed as rapporteur in ECON
2018/06/14
   EP - Committee referral announced in Parliament
2018/05/25
   EC - Legislative proposal published
Details

PURPOSE: to amend Council Directive 2006/112/EC on the common system of VAT in order to combat fraud affecting certain supplies of goods and services and to assist Member States in dealing with cases of sudden and massive VAT fraud.

PROPOSED ACT: Council Directive.

ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.

BACKGROUND: Article 199a of Council Directive 2006/112/EC (the VAT Directive) allows Member States to optionally use the reverse charge mechanism for payment of VAT on supplies of pre-defined goods and services, which are susceptible to fraud, and in particular, to missing trader intra-Community (MTIC) fraud . Article 199a offers an option of applying the reverse charge mechanism for listed supplies and Article 199b by offering an accelerated procedure for the introduction of the reverse charge mechanism in case of sudden and massive fraud. Both Articles expire on 31 December 2018 .

The Commission recently presented two legislative proposals which aim at tackling VAT fraud more fundamentally . The first is a proposal for administrative cooperation and fighting fraud in the field of VAT. The second is the proposal outlining the cornerstones for a simpler and fraud-proof definitive VAT system for intra-Union trade. A two-step approach will be followed for the implementation of these cornerstones. As a first step, the Commission will present in the first semester of 2018 a proposal containing the detailed provisions for the operation of the definitive arrangements for intra-Union Business-to-Business (B2B) supplies of goods.

These arrangements, which should enter into force on 1 July 2022 , provide a fundamental response to missing trader intra-Community (MTIC) fraud. Since VAT would be effectively charged on intra-Union supplies, a trader can no longer acquire goods, transported or dispatched from another Member State, exempt from VAT which is at the root of the MTIC fraud.

On 8 March 2018, the Commission presented a report on the effects of the mechanisms on combating fraud referred to in Articles 199a and 199b of VAT Directive. The report concluded that these mechanisms have proved useful as temporary and targeted measures. Their expiration on 31 December 2018 would deprive Member States of an efficient tool to fight fraud. The Commission therefore proposes to prolong the measures included in Articles 199a and 199b until 30 June 2022, the date on which the definitive regime for intra-Union B2B supplies of goods should enter into force.

CONTENT: this proposal to amend the VAT Directive seeks to prolong until 30 June 2022 :

the possibility for Member States to apply the reverse charge mechanism to combat existing fraud in supplies of goods and services included in Article 199a(1) of the VAT Directive; the possibility to use the Quick Reaction Mechanism to fight sudden and massive fraud.

The current proposal is without prejudice to the Commission's proposal as regards the temporary application of a generalised reverse charge mechanism which would provide Member States that are particularly affected by fraud with the possibility to introduce a general (and not sector specific) reverse charge mechanism for domestic supplies of goods and services provided strict conditions are met.

Documents

Votes

A8-0283/2018 - Sirpa Pietikäinen - Vote unique 03/10/2018 12:38:01.000 #

2018/10/03 Outcome: +: 615, 0: 43, -: 9
DE FR ES IT PL GB RO SE PT NL CZ BE AT BG HU FI DK SK LT HR EL IE SI CY MT LU EE LV ??
Total
87
68
49
66
45
56
30
19
19
25
17
18
17
16
15
13
12
11
10
10
19
8
8
6
6
5
5
3
2
icon: PPE PPE
198

United Kingdom PPE

2

Belgium PPE

3

Lithuania PPE

2

Cyprus PPE

1

Luxembourg PPE

3

Estonia PPE

For (1)

1

Latvia PPE

2
icon: S&D S&D
172

Netherlands S&D

For (2)

2

Hungary S&D

2
3

Croatia S&D

2

Slovenia S&D

For (1)

1

Cyprus S&D

2

Malta S&D

3

Estonia S&D

For (1)

1
icon: ALDE ALDE
65

Germany ALDE

2

United Kingdom ALDE

1

Romania ALDE

3

Portugal ALDE

1

Austria ALDE

For (1)

1

Croatia ALDE

2

Ireland ALDE

For (1)

1

Slovenia ALDE

For (1)

1

Luxembourg ALDE

For (1)

1

Estonia ALDE

2

Latvia ALDE

1
icon: ECR ECR
59

Italy ECR

2

Romania ECR

2

Sweden ECR

2

Netherlands ECR

2

Czechia ECR

2

Belgium ECR

2

Bulgaria ECR

2
2

Slovakia ECR

2

Lithuania ECR

1

Croatia ECR

For (1)

1

Greece ECR

Abstain (1)

1

Cyprus ECR

1
icon: Verts/ALE Verts/ALE
51

Italy Verts/ALE

For (1)

1

Netherlands Verts/ALE

2

Belgium Verts/ALE

2

Austria Verts/ALE

3

Hungary Verts/ALE

2

Finland Verts/ALE

For (1)

1

Denmark Verts/ALE

For (1)

1

Lithuania Verts/ALE

For (1)

1

Croatia Verts/ALE

For (1)

1

Slovenia Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1

Estonia Verts/ALE

For (1)

1
icon: GUE/NGL GUE/NGL
40

Italy GUE/NGL

2

United Kingdom GUE/NGL

1

Sweden GUE/NGL

For (1)

1

Netherlands GUE/NGL

3

Czechia GUE/NGL

1

Finland GUE/NGL

For (1)

1

Denmark GUE/NGL

For (1)

1

Ireland GUE/NGL

3

Cyprus GUE/NGL

2
icon: ENF ENF
28

Germany ENF

Abstain (1)

1

Poland ENF

For (1)

1

Netherlands ENF

4

Belgium ENF

Abstain (1)

1
3
icon: EFDD EFDD
35

Germany EFDD

For (1)

1

Poland EFDD

1

Lithuania EFDD

For (1)

1
icon: NI NI
17

Germany NI

For (1)

Against (1)

2

United Kingdom NI

For (1)

Against (1)

Abstain (2)

4

Hungary NI

For (1)

1

Denmark NI

1

NI

2

History

(these mark the time of scraping, not the official date of the change)

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events/6/docs/0/url
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New
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committees/0
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Responsible Committee
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EP
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committee_full
Economic and Monetary Affairs
committee
ECON
rapporteur
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shadows
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committee
ECON
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2018-06-20T00:00:00
rapporteur
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activities
  • date: 2018-05-25T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2018/0298/COM_COM(2018)0298_EN.pdf title: COM(2018)0298 type: Legislative proposal published celexid: CELEX:52018PC0298:EN body: EC commission: DG: url: http://ec.europa.eu/info/departments/taxation-and-customs-union_en title: Taxation and Customs Union Commissioner: MOSCOVICI Pierre type: Legislative proposal published
  • date: 2018-06-14T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP shadows: group: S&D name: SZANYI Tibor group: ECR name: SWINBURNE Kay group: ALDE name: CORNILLET Thierry group: Verts/ALE name: SCOTT CATO Molly responsible: True committee: ECON date: 2018-06-20T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: PIETIKÄINEN Sirpa
  • date: 2018-09-07T00:00:00 body: EP type: Vote in committee, 1st reading/single reading committees: body: EP shadows: group: S&D name: SZANYI Tibor group: ECR name: SWINBURNE Kay group: ALDE name: CORNILLET Thierry group: Verts/ALE name: SCOTT CATO Molly responsible: True committee: ECON date: 2018-06-20T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: PIETIKÄINEN Sirpa
  • date: 2018-09-10T00:00:00 body: EP type: Committee report tabled for plenary, 1st reading/single reading committees: body: EP shadows: group: S&D name: SZANYI Tibor group: ECR name: SWINBURNE Kay group: ALDE name: CORNILLET Thierry group: Verts/ALE name: SCOTT CATO Molly responsible: True committee: ECON date: 2018-06-20T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: PIETIKÄINEN Sirpa
  • date: 2018-10-03T00:00:00 body: EP type: Indicative plenary sitting date, 1st reading/single reading
commission
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rapporteur
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ECON
date
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committee_full
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group: EPP name: PIETIKÄINEN Sirpa
council
  • body: CSL type: Council Meeting council: Economic and Financial Affairs ECOFIN meeting_id: 3646 url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=3646*&MEET_DATE=06/11/2018 date: 2018-11-06T00:00:00
docs
  • date: 2018-07-11T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE625.397 title: PE625.397 type: Committee draft report body: EP
events
  • date: 2018-05-25T00:00:00 type: Legislative proposal published body: EC docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2018/0298/COM_COM(2018)0298_EN.pdf title: COM(2018)0298 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2018&nu_doc=0298 title: EUR-Lex summary: PURPOSE: to amend Council Directive 2006/112/EC on the common system of VAT in order to combat fraud affecting certain supplies of goods and services and to assist Member States in dealing with cases of sudden and massive VAT fraud. PROPOSED ACT: Council Directive. ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion. BACKGROUND: Article 199a of Council Directive 2006/112/EC (the VAT Directive) allows Member States to optionally use the reverse charge mechanism for payment of VAT on supplies of pre-defined goods and services, which are susceptible to fraud, and in particular, to missing trader intra-Community (MTIC) fraud . Article 199a offers an option of applying the reverse charge mechanism for listed supplies and Article 199b by offering an accelerated procedure for the introduction of the reverse charge mechanism in case of sudden and massive fraud. Both Articles expire on 31 December 2018 . The Commission recently presented two legislative proposals which aim at tackling VAT fraud more fundamentally . The first is a proposal for administrative cooperation and fighting fraud in the field of VAT. The second is the proposal outlining the cornerstones for a simpler and fraud-proof definitive VAT system for intra-Union trade. A two-step approach will be followed for the implementation of these cornerstones. As a first step, the Commission will present in the first semester of 2018 a proposal containing the detailed provisions for the operation of the definitive arrangements for intra-Union Business-to-Business (B2B) supplies of goods. These arrangements, which should enter into force on 1 July 2022 , provide a fundamental response to missing trader intra-Community (MTIC) fraud. Since VAT would be effectively charged on intra-Union supplies, a trader can no longer acquire goods, transported or dispatched from another Member State, exempt from VAT which is at the root of the MTIC fraud. On 8 March 2018, the Commission presented a report on the effects of the mechanisms on combating fraud referred to in Articles 199a and 199b of VAT Directive. The report concluded that these mechanisms have proved useful as temporary and targeted measures. Their expiration on 31 December 2018 would deprive Member States of an efficient tool to fight fraud. The Commission therefore proposes to prolong the measures included in Articles 199a and 199b until 30 June 2022, the date on which the definitive regime for intra-Union B2B supplies of goods should enter into force. CONTENT: this proposal to amend the VAT Directive seeks to prolong until 30 June 2022 : the possibility for Member States to apply the reverse charge mechanism to combat existing fraud in supplies of goods and services included in Article 199a(1) of the VAT Directive; the possibility to use the Quick Reaction Mechanism to fight sudden and massive fraud. The current proposal is without prejudice to the Commission's proposal as regards the temporary application of a generalised reverse charge mechanism which would provide Member States that are particularly affected by fraud with the possibility to introduce a general (and not sector specific) reverse charge mechanism for domestic supplies of goods and services provided strict conditions are met.
  • date: 2018-06-14T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2018-09-07T00:00:00 type: Vote in committee, 1st reading/single reading body: EP
  • date: 2018-09-10T00:00:00 type: Committee report tabled for plenary, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2018-0283&language=EN title: A8-0283/2018 summary: The Committee on Economic and Monetary Affairs adopted, under the consultation procedure, the report by Sirpa PIETIKÄINEN (EPP, FI) on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud. The committee recommended that the European Parliament approve the Commission proposal without amendments. The purpose of this proposal is to prolong: (i) the possibility for Member States to apply the reverse charge mechanism to combat existing fraud in supplies of goods and services included in Article 199a of the VAT Directive and (ii) the possibility to use the Quick Reaction Mechanism (QRM) to combat fraud. The purpose of the measures foreseen in Articles 199a and 199b is to allow Member States to quickly tackle problems of the Missing Trader Intra-Community (MTIC) fraud. The measures included in Articles 199a and 199b of the VAT Directive have been useful as temporary and targeted measures. Their expiration on 31 December 2018 would deprive Member States of an efficient tool to fight fraud. It is therefore proposed to prolong the measures included in Articles 199a and 199b until 30 June 2022, the date on which the definitive regime for intra-Union B2B supplies of goods should enter into force.
  • date: 2018-10-02T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20181002&type=CRE title: Debate in Parliament
  • date: 2018-10-03T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2018-0367 title: T8-0367/2018 summary: The European Parliament adopted by 615 votes to 9 with 43 abstentions, under a special legislative procedure (consultation), a legislative resolution on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud. Parliament approved the Commission proposal without amendments. The proposal aims to extend until 30 June 2022 : (i) the possibility for Member States to apply the reverse charge mechanism to combat existing fraud affecting supplies of goods and services included in Article 199a of the VAT Directive and (ii) the possibility to use the Quick Reaction Mechanism to fight sudden and massive fraud.
  • date: 2018-11-06T00:00:00 type: Act adopted by Council after consultation of Parliament body: EP/CSL
  • date: 2018-11-06T00:00:00 type: End of procedure in Parliament body: EP
  • date: 2018-11-12T00:00:00 type: Final act published in Official Journal summary: PURPOSE: to amend Council Directive 2006/112/EC on the common system of VAT in order to combat fraud affecting certain supplies of goods and services and to assist Member States in dealing with sudden and massive fraud liable to lead to considerable and irreparable financial losses. LEGISLATIVE ACT: Council Directive (EU) 2018/1695 amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud. CONTENT: Article 199a of Council Directive 2006/112/EC (the VAT Directive) allows Member States to provide that the person liable for VAT due on supplies listed in that Article is the taxable person receiving the supply concerned (the ‘reverse charge mechanism’) in order to promptly tackle the problem of the missing trader fraud in intra-Community trade (MTIC). Member States may apply this mechanism until 31 December 2018 and for a minimum period of two years. As these two measures were due to expire on 31 December 2018, Member States would have been deprived of an efficient tool to combat VAT fraud. This amendment to the VAT Directive extends until 30 June 2022: - the possibility for Member States to apply the reverse charge mechanism to combat existing fraud affecting the supply of goods and services referred to in Article 199a(1) of the VAT Directive, and - the possibility of using the Quick Reaction Mechanism (QRM) to combat fraud. The QRM special measure shall be subject to appropriate control measures by the Member State with respect to taxable persons who supply the goods or services to which that measure applies, and shall be for a period not exceeding nine months. A Member State wishing to introduce a QRM special measure shall send a notification to the Commission using the standardised form and at the same time send it to the other Member States. Once the Commission has all the information it considers necessary for appraisal of the notification referred to in the first subparagraph of paragraph 2, it shall notify the Member States thereof. Where it objects to the QRM special measure, it shall produce a negative opinion within one month of that notification, and shall inform the Member State concerned and the VAT Committee thereof. Where the Commission does not object, it shall confirm this in writing to the Member State concerned and to the VAT Committee within the same time period. The Member State may adopt the QRM special measure from the date of receipt of that confirmation. ENTRY INTO FORCE: 2.12.2018. docs: title: Directive 2018/1695 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32018L1695 title: OJ L 282 12.11.2018, p. 0005 url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2018:282:TOC title: Corrigendum to final act 32018L1695R(01) url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexapi!prod!CELEXnumdoc&lg=EN&model=guicheti&numdoc=32018L1695R(01) title: OJ L 329 27.12.2018, p. 0053 url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2018:329:TOC
links
other
  • body: EC dg: url: http://ec.europa.eu/info/departments/taxation-and-customs-union_en title: Taxation and Customs Union commissioner: MOSCOVICI Pierre
procedure/Modified legal basis
Old
Rules of Procedure EP 150
New
Rules of Procedure EP 159
procedure/dossier_of_the_committee
Old
ECON/8/13244
New
  • ECON/8/13244
procedure/final
title
Directive 2018/1695
url
https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32018L1695
procedure/instrument
Old
Directive
New
  • Directive
  • Amending Directive 2006/112/EC 2004/0079(CNS)
procedure/stage_reached
Old
Awaiting Parliament 1st reading / single reading / budget 1st stage
New
Procedure completed
procedure/subject
Old
  • 2.70.02 Indirect taxation, VAT, excise duties
New
2.70.02
Indirect taxation, VAT, excise duties
procedure/summary
  • Amending Directive 2006/112/EC
activities/1
date
2018-06-14T00:00:00
body
EP
type
Committee referral announced in Parliament, 1st reading/single reading
committees
body: EP shadows: group: S&D name: SZANYI Tibor group: ECR name: SWINBURNE Kay group: ALDE name: CORNILLET Thierry group: Verts/ALE name: SCOTT CATO Molly responsible: True committee: ECON date: 2018-06-20T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: PIETIKÄINEN Sirpa
activities/2
date
2018-09-07T00:00:00
body
EP
type
Vote in committee, 1st reading/single reading
committees
body: EP shadows: group: S&D name: SZANYI Tibor group: ECR name: SWINBURNE Kay group: ALDE name: CORNILLET Thierry group: Verts/ALE name: SCOTT CATO Molly responsible: True committee: ECON date: 2018-06-20T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: PIETIKÄINEN Sirpa
activities/3
date
2018-09-10T00:00:00
body
EP
type
Committee report tabled for plenary, 1st reading/single reading
committees
body: EP shadows: group: S&D name: SZANYI Tibor group: ECR name: SWINBURNE Kay group: ALDE name: CORNILLET Thierry group: Verts/ALE name: SCOTT CATO Molly responsible: True committee: ECON date: 2018-06-20T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: PIETIKÄINEN Sirpa
activities/4/committees
  • body: EP shadows: group: ECR name: SWINBURNE Kay responsible: True committee: ECON date: 2018-06-20T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: PIETIKÄINEN Sirpa
activities/4/date
Old
2018-06-14T00:00:00
New
2018-10-03T00:00:00
activities/4/type
Old
Committee referral announced in Parliament, 1st reading/single reading
New
Indicative plenary sitting date, 1st reading/single reading
committees/0/shadows/0
group
S&D
name
SZANYI Tibor
committees/0/shadows/2
group
ALDE
name
CORNILLET Thierry
committees/0/shadows/3
group
Verts/ALE
name
SCOTT CATO Molly
procedure/Modified legal basis
Rules of Procedure EP 150
procedure/stage_reached
Old
Awaiting committee decision
New
Awaiting Parliament 1st reading / single reading / budget 1st stage
activities/0/docs/0/text
  • PURPOSE: to amend Council Directive 2006/112/EC on the common system of VAT in order to combat fraud affecting certain supplies of goods and services and to assist Member States in dealing with cases of sudden and massive VAT fraud.

    PROPOSED ACT: Council Directive.

    ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.

    BACKGROUND: Article 199a of Council Directive 2006/112/EC (the VAT Directive) allows Member States to optionally use the reverse charge mechanism for payment of VAT on supplies of pre-defined goods and services, which are susceptible to fraud, and in particular, to missing trader intra-Community (MTIC) fraud. Article 199a offers an option of applying the reverse charge mechanism for listed supplies and Article 199b by offering an accelerated procedure for the introduction of the reverse charge mechanism in case of sudden and massive fraud. Both Articles expire on 31 December 2018.

    The Commission recently presented two legislative proposals which aim at tackling VAT fraud more fundamentally. The first is a proposal for administrative cooperation and fighting fraud in the field of VAT. The second is the proposal outlining the cornerstones for a simpler and fraud-proof definitive VAT system for intra-Union trade. A two-step approach will be followed for the implementation of these cornerstones. As a first step, the Commission will present in the first semester of 2018 a proposal containing the detailed provisions for the operation of the definitive arrangements for intra-Union Business-to-Business (B2B) supplies of goods.

    These arrangements, which should enter into force on 1 July 2022, provide a fundamental response to missing trader intra-Community (MTIC) fraud. Since VAT would be effectively charged on intra-Union supplies, a trader can no longer acquire goods, transported or dispatched from another Member State, exempt from VAT which is at the root of the MTIC fraud.

    On 8 March 2018, the Commission presented a report on the effects of the mechanisms on combating fraud referred to in Articles 199a and 199b of VAT Directive. The report concluded that these mechanisms have proved useful as temporary and targeted measures. Their expiration on 31 December 2018 would deprive Member States of an efficient tool to fight fraud. The Commission therefore proposes to prolong the measures included in Articles 199a and 199b until 30 June 2022, the date on which the definitive regime for intra-Union B2B supplies of goods should enter into force.

    CONTENT: this proposal to amend the VAT Directive seeks to prolong until 30 June 2022:

    • the possibility for Member States to apply the reverse charge mechanism to combat existing fraud in supplies of goods and services included in Article 199a(1) of the VAT Directive;
    • the possibility to use the Quick Reaction Mechanism to fight sudden and massive fraud.

    The current proposal is without prejudice to the Commission's proposal as regards the temporary application of a generalised reverse charge mechanism which would provide Member States that are particularly affected by fraud with the possibility to introduce a general (and not sector specific) reverse charge mechanism for domestic supplies of goods and services provided strict conditions are met.

activities/1/committees/0/date
2018-06-20T00:00:00
activities/1/committees/0/rapporteur
  • group: EPP name: PIETIKÄINEN Sirpa
activities/1/committees/0/shadows
  • group: ECR name: SWINBURNE Kay
committees/0/date
2018-06-20T00:00:00
committees/0/rapporteur
  • group: EPP name: PIETIKÄINEN Sirpa
committees/0/shadows
  • group: ECR name: SWINBURNE Kay
activities/0/commission/0
DG
Commissioner
MOSCOVICI Pierre
activities/1
date
2018-06-14T00:00:00
body
EP
type
Committee referral announced in Parliament, 1st reading/single reading
committees
body: EP responsible: True committee_full: Economic and Monetary Affairs committee: ECON
other/0
body
EC
dg
commissioner
MOSCOVICI Pierre
procedure/dossier_of_the_committee
ECON/8/13244
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision
activities/0/docs/0/celexid
CELEX:52018PC0298:EN
activities
  • date: 2018-05-25T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2018/0298/COM_COM(2018)0298_EN.pdf type: Legislative proposal published title: COM(2018)0298 type: Legislative proposal published body: EC commission:
committees
  • body: EP responsible: True committee_full: Economic and Monetary Affairs committee: ECON
links
other
    procedure
    reference
    2018/0150(CNS)
    subtype
    Legislation
    legal_basis
    Treaty on the Functioning of the EU TFEU 113
    stage_reached
    Preparatory phase in Parliament
    summary
    Amending Directive 2006/112/EC
    instrument
    Directive
    title
    Common system of value added tax (VAT): period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud
    type
    CNS - Consultation procedure
    subject
    2.70.02 Indirect taxation, VAT, excise duties