EU proposes extending VAT anti-fraud tools to June 2030

Both temporary mechanisms would continue

COM(2026) 515, procedure 2026/0292(CNS), would replace the expiry dates in Articles 199a(1) and 199b(6) of Council Directive 2006/112/EC. Both provisions currently expire on 31 December 2026; Article 1 of the proposal would move each date to 30 June 2030. The proposal does not itself enact the extension: it requires Council adoption and publication in the Official Journal.^[1][2]

Article 199a targets listed fraud-sensitive supplies

Article 199a allows a Member State to make the customer, rather than the supplier, liable for VAT on listed categories where carousel and similar fraud risks arise. The categories include emissions allowances, mobile phones, integrated circuits, gas and electricity supplied to taxable dealers, telecommunications services, game consoles, laptops, cereals and certain metals. Use is optional and remains subject to the Directive’s conditions, notification and reporting safeguards; the proposal changes the end date, not the operating scope.^[1][2]

The quick reaction mechanism addresses sudden fraud

Article 199b provides a separate emergency route where sudden and massive fraud could cause considerable and irreparable financial loss. A Member State may temporarily designate the customer as liable for specified supplies after notifying the Commission and other Member States, while pursuing the relevant Article 395 derogation. The measure is limited to nine months and must be accompanied by appropriate controls. COM(2026) 515 would preserve that mechanism to 30 June 2030 without changing those conditions.^[1][2]

Groups must still follow national implementation

The proposed extension would bridge the period before the VAT in the Digital Age cross-border digital-reporting rules are due to apply from 1 July 2030. It would not create an EU-wide reverse charge or require every Member State to use the mechanisms. Multinational groups should therefore continue to track which jurisdictions invoke Articles 199a or 199b, the supplies covered, domestic effective periods and related invoice and reporting requirements. If adopted, the directive would enter into force on the twentieth day after Official Journal publication.^[1][2]