Council Directive (EU) 2018/2057 of 20 December 2018
Released 27 December 2018
Directive (EU) 2018/2057 amends Directive 2006/112/EC to implement a temporary measure to combat carousel fraud from 16 January 2019.
COUNCIL DIRECTIVE (EU) 2018/2057 of 20 December 2018 amending Directive 2006/112/EC on the common system of value added tax as regards the temporary application of a generalised reverse charge mechanism in relation to supplies of goods and services above a certain threshold amends Council Directive 2006/112/EC to implement a temporary measure to address endemic carousel fraud pending the implementation of a definitive VAT regime for cross-border business-to-business trade between member states. The amendments introduce new art. 199c allowing member states to implement a temporary generalised reverse charge mechanism (GRCM) with a certain threshold per transaction which would derogate from one of the general principles of the current VAT system, as regards the fractionated payment system. If member states choose to apply the GRCM, they should apply it to all non-cross-border supplies of goods and services above the defined threshold of EUR 17 500 per transaction. The Directive enters into force on 16 January 2019 (as the twentieth day following that of its publication in the Official Journal of the European Union) and shall apply until 30 June 2022.
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