8 November 2018
During October 2018 and in an effort to prevent VAT fraud, the European Council agreed a proposal that will allow EU member states most severely affected by VAT fraud to make temporary exemptions from normal VAT rules until July 2022.
The proposed exemptions will allow member states heavily affected by fraud to apply a GTRC to transactions above a value of €17,500, which will mean that businesses providing transactions above this value will no longer have to charge VAT on their supplies to other business customers. Instead, it will be the customers’ responsibility to account for the VAT in their own returns.
Member states wishing to use the GTRC will have to make an application to the EU Council in order to be authorised and, strict conditions must be met in order for member states to be eligible.