Extension of the Application Periods of Optional Reverse Charge and Quick Reaction Mechanisms Against VAT Fraud

Further to the amendment of the VAT Directive by the European Council, the application period both for the optional reverse charge mechanism and the quick reaction mechanism was extended until 31 December 2026.

Northern Ireland Protocol Bill May Affect VAT and Customs Duties Rules

The European Commission stated that the European Union (EU) will not renegotiate the Protocol on Ireland and Northern Ireland because it was a precondition for the negotiation of the Trade and Cooperation Agreement for the United Kingdom to leave the EU, it avoids a hard border on Ireland, it protects the integrity of the EU single market, and it is an integral part of the Withdrawal Agreement.

This statement was made after the UK government presented on 13 June 2022 a legislative proposal called the Northern Ireland Protocol Bill, under the consideration that after 18 months of discussion with the EU, from their perspective, the EU proposals do not address the core and practical problems created by the protocol in Northern Ireland. If approved, the bill would impact some VAT and customs aspects that may affect the single market in the EU.

European Council Authorises Poland to Apply Mandatory E-Invoicing

The European Council authorised Poland to make e-invoicing mandatory for taxable persons established in Poland without the need of acceptance from the recipient.

European Commission Approves Cyprus VAT Deferral Scheme

The European Commission approved the Cypriot VAT deferral scheme consisting in providing €20 million in aid to support businesses’ liquidity affected by the COVID-19 pandemic through VAT payment deferrals without the accrual of interests and penalties. The aid will be granted no later than 30 June 2022 and deferred no later than 30 June 2023.