VAT optional reverse charge will apply until 2027

Council Directive (EU) 2022/890 of 3 June 2022 has amended Directive 2006/112/EC as regards the extension of the application period 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.

Essentially the option for Member States to apply the reverse charge mechanism (art 199a) and the Quick Reaction Mechanism (QRM) (art 199b) will apply until 31 December 2026.

These measures are intended to address the risk of VAT fraud, in particular, Missing Trader Intra-Community fraud, by shifting liability for VAT payment from the vendor to the customer.