EU Commission proposes keeping VAT reverse-charge anti-fraud tools to 2030

What would be extended

The proposal would amend articles 199a(1) and 199b(6) of Council Directive 2006/112/EC. Article 199a lets a Member State make the business customer, rather than the supplier, liable for VAT on listed domestic supplies exposed to missing-trader fraud. Those categories include emissions allowances, mobile phones, integrated circuits, specified electronic devices, gas and electricity supplied to taxable dealers, metals and certain agricultural commodities.^[1]

Article 199b provides the Quick Reaction Mechanism. In an urgent case of sudden and massive fraud, it allows a Member State to seek a temporary reverse-charge measure for supplies not already listed in article 199a. The Commission must respond within one month; a non-objection allows the Member State to apply the temporary measure while pursuing a conventional derogation.^[1]

A corrected expiry date

The current expiry is 31 December 2026, set by Council Directive (EU) 2022/890. COM(2026) 515 would replace that date with 30 June 2030 for both mechanisms. This is important because the Commission’s 9 October news summary referred to 30 June 2026; the proposal and the enacted 2022 directive both establish that the existing legal deadline is 31 December 2026.^[1][2][3]

Why 2030 matters

The proposed end date aligns the temporary tools with the start of the VAT in the Digital Age cross-border digital-reporting regime on 1 July 2030. The Commission reports that almost all Member States use article 199a for at least one category and that 24 regard their reverse-charge measures as useful against fraud. The proposal changes only the application period; it does not make the optional reverse charge compulsory or broaden its listed supplies.^[1]

Proposal, not enacted law

The measure is not yet law. It will be considered by the Council under the special legislative procedure. Unless adopted and published before the existing deadline, articles 199a and 199b will continue to expire on 31 December 2026. Businesses operating in sectors where a Member State already uses the option should therefore monitor the Council file and any related domestic continuation measures.^[1][2][3]