Briefing 
Updated: 
 
Created:   

Vote on “reverse-charging” VAT to help combat fraud 

Parliament is to ask the EU Commission to assess the benefits of a “reverse—charging” value added tax system, in which the customer is charged rather than the supplier, to replace current EU arrangements for collecting VAT. In a draft resolution to be voted on Wednesday, MEPs note that under today’s system, fraud and failure to collect VAT result in an estimated €170 billion a year in lost revenue.

Parliament will call on the Commission to evaluate pilot projects carried out in countries like the Czech Republic, which have charged VAT to the end customer, rather than all the companies in the supply chain.


The Commission is expected to make public new proposals for a definitive VAT system for cross-border trade by the end of next year.


Procedure:  Non-legislative resolution

2016/2033(INI)

Vote:  Wednesday, 23 November

 

#VAT