On 10 February 2022, the European Commission published a proposal amending Directive 2006/112/EC on the Common System of Value Added Tax. The draft Directive extends the possibility for Member States to apply the reverse charge mechanism to combat tax fraud in areas susceptible to such fraud until the end of 2025. These include, for example, the supply of mobile phones, cereals, industrial crops, the transfer of greenhouse gas quotas and the provision of telecommunications services.
At the same time, the proposal provides for the possibility to use the “quick reaction” mechanism (QRC) to fight tax fraud in specific cases. The QRC is a measure that allows for the temporary introduction of the reverse charge mechanism in the case of the supply of goods and services in situations where unexpected and widespread tax fraud has suddenly occurred.
