On June 7, 2018 the European Commission published its “June infringements package: key decisions”. The June infringements package includes several key decisions in the area of Taxation and Customs Union. One of the interesting key decisions is the decision to request Latvia to align its rules regarding the VAT reverse charge mechanism with the VAT Directive.


In this respect the following is stated in the June infringements package: key decisions:

The Commission decided today to send a letter of formal notice to Latvia in relation to its recent legislation allowing the application of a VAT reverse charge on sales of construction products, consumer electronics and electrical household appliances between businesses. This legislation violates EU VAT rules (VAT Directive, Council Directive 2006/112/EC), which allows the reverse charge mechanism only when it is specifically targeted and used only for exhaustively listed products. If Latvia does not act within the next two months, the Commission may send a reasoned opinion to the Latvian authorities.


Click here to be forwarded to the June infringements package: key decisions as available on the website of the European Commission. (the key decisions in the area of Taxation and Customs Union can be found under 6)



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