December 21st 2016 – The full article can be viewed here under the section titled ‘VAT: Commission proposes options for Member States to derogate from the current EU system, under certain conditions’, The main point for VAT is as follows; The proposal is for an optional General Reverse Charge Mechanism (‘reverse charge’) means that EU countries would be able to apply temporarily a system which derogates from the current fractionated payment of VAT. Sales between businesses (B2B) of more than €10,000 could be invoiced free of VAT, with only the final consumer being liable for the full VAT costs. Reverse charge on domestic sales is not something new, and is a practice used by many EU countries already, details from HMRC can be found here, however with the current domestic reverse charges, it is based on specific items rather than amounts. It will be much harder to manage under a threshold of €10k. The proposal is not without some controversy however, as the key component of VAT is that
Source: EU VAT – Domestic reverse charge for B2B transactions
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