ECOFIN met last month and discussed a proposal that would allow member states to apply non-standard VAT rates to electronically supplied publications along with a proposal to allow for a generalised but temporary reversal of liability as a means of preventing VAT fraud.

The so-called reverse charge mechanism involves shifting liability for VAT payments from the supplier to the customer. It thereby derogates from the general principles of the EU’s VAT system. The proposal relating to e-publications seeks to allow all member states to apply all types of non-standard VAT rates to both physical and electronic publications, but without creating an obligation to do so. Both proposals require unanimity for adoption by the Council, after consulting with the European Parliament.