Briefing - Targeting VAT fraud: Role of the reverse charge mechanism - 02-02-2026
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Value added tax (VAT) is a cornerstone of national public finances and an important source of revenue for the EU budget. Missing trader intra-Community (MTIC) fraud – often perpetrated by organised criminal networks – is among the most damaging forms of VBriefing - Targeting VAT fraud: Role of the reverse charge mechanism - 02-02-2026
Value added tax (VAT) is a cornerstone of national public finances and an important source of revenue for the EU budget. Missing trader intra-Community (MTIC) fraud – often perpetrated by organised criminal networks – is among the most damaging forms of VAT fraud, causing annual revenue losses running into the billions, and underscoring the need for effective anti-fraud tools. One such tool is the reverse charge mechanism, under which the liability to account for VAT is shifted from the supplier to the customer. The EU VAT Directive's optional reverse charge mechanisms – Articles 199a and 199b, introduced in 2010 and 2013 respectively – are currently authorised until 31 December 2026. Given their exceptional and time-limited nature, it would appear timely to assess how these mechanisms operate in practice, and how effective they have been in addressing MTIC fraud, with a view to their possible extension. Source : © European Union, 2026 - EP Read more
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