Joint Statement

Joint Industry Call to Sustain Protections Against VAT Fraud in Energy, Emissions and Energy Certificates Trading

Other | 4 Mar 26
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Missing Trader Intra-Community (MTIC) fraud continues to pose a significant threat to the integrity, transparency and proper functioning of European wholesale markets for electricity, gas, emission allowances and related energy certificates.

 

FESE has co-signed a joint industry call to the European Commission and EU Member States to extend the application of the targeted derogation under Article 199a of the EU VAT Directive. The derogation, authorising the application of the Domestic Reverse Charge Mechanism (DRCM), is set to expire on 31st December 2026.

 

Highlighting the effectiveness of the DRCM in preventing VAT fraud, the join industry call advocates for:

  • Permanent Derogation or Extension by at Least Ten Years
  • Comprehensive DRCM Implementation Across All Member States
  • Consistent Application of the DRCM to the Transfer of Gas and Electricity Certificates
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