ECOFIN Discusses Application Of reverse charge mechanism in Czech Republic & Austria

The Economic and Financial Affairs Council has discussed the possibility to allow Austria and the Czech Republic to apply a general domestic reverse charge mechanism, it will result in shifting liability to pay VAT from the supplier to the customer as a means for fraud prevention. Despite previous objections of the European Commission to the general reverse charge, Austria and the Czech Republic reiterated their request to be authorized to apply the general reverse charge for domestic supplies exceeding EUR 10,000.