The EU Parliament has reopened debate on the optional reverse charge mechanism, which is set to expire on 31 December 2026. While the tool has proven effective in curbing missing trader intra‑community fraud in high‑risk sectors, concerns remain about VAT distortions and the need for complementary digital reporting controls. The review signals that reverse charge will stay part of the anti‑fraud toolkit but will be increasingly paired with real‑time transaction monitoring under the ViDA framework.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
Numeral · about 18 hours ago
The EU imposes VAT on SaaS and software sales, applying a customer-location rule for both B2B and B2C transactions. SaaS sellers must collect VAT IDs, validate them via VIES, and apply the reverse charge for B2B sales to VAT-registered buyers.
VatCompliance · about 22 hours ago
EU VAT authorities now routinely audit e-commerce sellers, matching platform data against returns. The article outlines the audit process, DAC7 obligations, and record-keeping requirements.
Numeral · 1 day ago
EU VAT compliance for U.S. sellers is complex, with new changes effective 1 July 2026. The EU removed the €150 de minimis exemption, so customs duties now apply to all imports, including those under €150. U.S. sellers must use the Import One Stop Shop to collect VAT at checkout for orders under €150.
SGS · 3 days ago
EU lowers import duties on U.S. goods as Regulation (EU) 2026/1455 enters into force on 1 July 2026. The regulation eliminates duties on many industrial products, reduces duties on agricultural goods, and introduces tariff-rate quotas for selected items.
Numeral · 4 days ago
The EU One Stop Shop (OSS) is a VAT scheme that allows businesses to register in one member state and file a single quarterly return for cross-border B2C sales. It applies to EU-based companies with aggregate sales above €10,000 and to non-EU businesses with a fixed establishment in the EU. The scheme simplifies compliance but does not replace domestic VAT returns.
International Tax Review · 5 days ago
EU: ViDA, the Council Directive (EU) 2025/516, will harmonise digital reporting for B2B transactions from 1 July 2030, affecting national reporting systems. Existing real-time reporting systems in force before 1 January 2024 may transition by 2035, while new systems introduced after that date must comply by 1 July 2030. Member states retain limited authority for B2C reporting and other non-harmonised obligations.
Reach finance leaders who read VAT news.
Put your brand alongside trusted tax-tech intelligence across 150+ countries.
Key Takeaways
The authorisation under Articles 199a and 199b of the EU VAT Directive 2006/112/EC expires on 31 December 2026.
High‑risk sectors such as emissions trading, telecoms, and electronics have experienced measurable reductions or elimination of MTIC fraud.
The Parliament plans to complement reverse charge with digital reporting under the ViDA framework, Eurofisc data sharing, and real‑time transaction monitoring.
It is designed for rapid deployment in emerging fraud scenarios but remains unused due to restrictive conditions.
It concentrates VAT collection risk at the final stage of the supply chain, potentially shifting fraud to untargeted sectors.
Primary source
Read the full article at VATCalcThis summary was published on VATfaqs.com on 6 April 2026. It relates to VAT developments in European Union. The original source is VATCalc.
