The EU's Council meeting of Economic and Finance Ministers will take place tomorrow, Tuesday 5 March. A state of play discussion on anti-VAT fraud measures is on the agenda including the Commission's proposal for a Quick Reaction Mechanism (QRM). The QRM is one of the actions of the Commission's plan to fight against tax fraud and evasion of 6 December 2012.
Under the QRM, a Member State faced with a serious case of sudden and massive VAT fraud would be able to implement certain emergency measures, in a way which they are currently not allowed to under VAT legislation. In this context, the proposal provides that Member States would be able to apply, within the space of a month, a "reverse charge mechanism" which makes the recipient rather than the supplier of the goods or services liable for VAT. According to the Commission, this would significantly improve their chances of effectively tackling complex fraud schemes, such as carrousel fraud, and of reducing otherwise irreparable financial losses.