One of the proposals consists of a reverse taxation mechanism, which would apply to goods and services providers from eligible states who get charged more than EUR 10,000 per bill. It did not receive unanimous agreement and as such will be discussed at a later meeting.
The second proposal supported by Romania, a reduction in VAT for online publications, will also be decided upon at a further meeting.
“We cannot delay any longer taking decisions on such projects, which could help member states wishing to apply the mechanism to fight VAT fraud more efficiently. I know that there are some member states still doubting the efficiency of this mechanism, but we should forget that the discussed proposal has sufficient safeguarding measures in the case of unforeseen effect,” stated Romanian Finance Minister Eugen Teodorovici.
Romania expressed its support for the two proposed directives during the meeting of the EU’s Economic and Financial Affairs Council (ECOFIN) which took place on Friday, in Brussels.