Based on the agreement reached by the ECOFIN council, a general extension of the VAT reverse charge mechanism shall apply to domestic transactions of value higher that EUR 17 500 (ca. CZK 450 000) per transaction. Member states may temporarily apply the general mechanism of reverse charge until 30 June 2022 if the following conditions are met:

• The loss of income from VAT for the year 2014 is at least 5 percentage points above the median loss of income from VAT in the EU.
• The share of so called carousel frauds on the entire loss of income from VAT should be more than 25%.
• The member state can prove that other control measures are not sufficient for the fight against carousel fraud on its territory, states specific reasons why, and reasons why administrative cooperation in the field of VAT has shown insufficient.
• The member state can prove that the expected benefit of introducing this mechanism of reverse charge will outweigh the expected overall burden on businesses and the tax administration by at least 25%.
• The member state can prove that introducing this mechanism will not for the businesses or tax administration bring about costs higher than costs brought about by other control measures.

The member state must submit a request to the Commission and in it state the relevant calculations, and the required reasoning and information.