The European Association of CCP Clearing Houses (EACH) has provided feedback responded to the European Commission proposal for a Council Directive on ‘VAT – extension of ‘optional reverse charge’ and ‘quick reaction’ mechanisms’. In summary, EACH Members:
- Very much support the European Commission’s proposal regarding the possibility for Member States to apply the reverse charge mechanism to combat existing fraud in supplies of goods and services include. As the operators of clearing houses managing risks in energy markets, EACH Members are concerned about the potential frauds faced in the wholesale electricity and gas sectors.
- Welcome the European Commission’s proposed Directive to extend the reverse charge mechanism until 31st December 2025 and hope that EU Authorities will be able to find a definitive solution to this issue in the near future. However, to avoid the need of regular extensions which require time and resources by both institutional as well as industry stakeholders EACH Members would prefer a complete deletion of a sunset date.
For more information, please visit the EACH website at www.eachccp.eu
