On 27 December 2018, Council Directive (EU) 2018/2057 was published in the Official Journal of the European Union. The Directive provides for the generalized reverse charge mechanism, which allows Member States that are most severely affected by VAT fraud to apply temporarily a generalized reversal of VAT liability. In particular, the reserve charge is meant to address carousel fraud.
Member states are only allowed to use the generalized reverse charge mechanism for domestic supplies of goo…