VAT: reverse charge mechanism

Key points:

The EESC

• is in favour of the proposal for a directive introducing a reverse charge mechanism for certain goods and services;
• continues to insist that "more far reaching" steps should be taken towards a new VAT system that limits opportunities for fraud and reduces the administrative burden for taxable persons;
• in particular supports the idea of taxation in the country of origin at a single rate of 15% for intra-Community transactions;
• considers that the reverse charge proposal introduces further divergences within the VAT system and is concerned about choices that postpone VAT harmonisation;
• believes that a rigorous control system will be essential in order to protect Member States from possible negative impacts of the reverse charge mechanism;
• is in favour of the inclusion of emission certificates in the proposal, however, it does not agree to the limit of only two products to which the reverse charge mechanism may be applied.