The European Commission has proposed Poland be authorized to assess a reverse charge on hard drives, such as solid-state drives and hard disk drives, which would impose VAT liability on the purchaser of such items. Article 199(a) of Council Directive 2006/112/EC (“the EU VAT Directive”) currently allows for Member States to impose a reverse charge on similar high-value items such as laptops and microprocessors, as a mechanism to combat VAT fraud. Extending the reverse charge to hard drives, however, would require a council implementing decision. The Commission recommends that such a derogation be granted to Poland from January 1, 2018 to December 31, 2020.
About the Author
Charles Riordan is a member of the Tax Research team at Sovos Compliance specializing in international taxation, with a focus on Value Added Tax systems in the European Union. Charles received his J.D. from Boston College Law School in 2013 and is an active member of the Massachusetts Bar.More Content by Charles Riordan