COMMUNICATION FROM THE COMMISSION TO THE COUNCIL in accordance with Article 395 of Council Directive 2006/112/EC
Date: 2026-02-16
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: Romania, VAT, derogation from EU law, fruit, supply, taxpayer, vegetable

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   EUROPEAN COMMISSION  Brussels, 16.2.2026  COM(2026) 78 final  COMMUNICATION FROM THE COMMISSION TO THE COUNCIL in accordance with Article 395 of Council Directive 2006/112/EC  
 
 
1. 

BACKGROUND 

Pursuant to Article 395 of Council Directive 2006/112/EC of 28 November 2006 on 
the  common  system  of  value  added  tax1  (the  VAT  Directive),  the  Council,  acting 
unanimously on a proposal from the Commission, may authorise any Member State to 
introduce special measures for derogation from the provisions of this Directive, in order 
to simplify the procedure for collecting VAT or to prevent certain forms of tax evasion 
or avoidance. As this procedure provides for a derogation from the general principles 
of VAT, in accordance with the case-law of the Court of Justice of the European Union 
(CJEU),  the  national  derogating  measures  referred  to  in  Article  395  of  the  VAT 
Directive which are allowed ‘in order to simplify the procedure for charging the tax or 
to prevent certain types of tax evasion or avoidance’, must be interpreted strictly and 
those  measures  must  also  be  necessary  and  appropriate  for  realising  the  specific 
objective which they pursue and have as little effect as possible on the objectives and 
principles of the VAT Directive2. 

By  letter  registered  at  the  Commission  on  22  August  2025,  Romania  requested  an 
authorisation to apply, by derogation of Article 193 of the VAT Directive, the reverse 
charge  mechanism  in  relation  to  certain  supplies  of  vegetables,  fruit,  clothing  and 
footwear.  

By a letter registered at the Commission on 18 November 2025, Romania modified its 
initial request by withdrawing its request for a derogation concerning the reverse charge 
mechanism for the supply of clothing and footwear. Instead, Romania opted to request 
for  a  derogation  to  apply  the  reverse  charge  mechanism  solely  on  the  supply  of 
vegetables  and fruits,  citing  the increased  risk of fraud and the high  perishability of 
these goods, which notably affects VAT collection. 

In  accordance  with  the  second  paragraph  of Article  395  of  the  VAT  Directive,  the 
Commission informed the other Member States by letter dated 15 December 2025 of 
the  request  made  by  Romania.  By  letter  dated  17  December  2025,  the  Commission 
notified Romania that it had all the information it considered necessary for appraisal of 
the request. 

2. 

THE REQUEST 

Romania requests, under Article 395 of the VAT Directive, that the Council, acting 
upon a proposal  of the  Commission, decide to authorise the application  of a special 
measure derogating from Article 193 of the VAT Directive as regards the application 
of the reverse charge mechanism in relation to certain supplies of vegetables and fruits, 
for a period of two years.  

As a rule, the person liable for the payment of VAT, pursuant to Article 193 of the VAT 
Directive, is the taxable person supplying the goods (or services). The purpose of the 
reverse charge mechanism is to shift that liability onto the taxable person to whom the 
supplies  are  made  in  order  to  avoid  that  the  supplier  would  have  the  possibility  to 
disappear with the VAT received (missing trader fraud). 

1 OJ L 347, 11.12.2006, p. 1 
2 See judgment of 27 January 2011 in case Vandoorne C-489/09, EU:C:2011:33, paragraph 27. 

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3. 

THE COMMISSION’S VIEW 

When  the  Commission  receives  requests  in  accordance  with Article  395  of  the VAT 
Directive,  these  are  examined  with  a  view  to  ensuring  that  the  basic  conditions  for 
granting a derogation are fulfilled, i.e. whether the proposed specific measure simplifies 
procedures for taxable persons and/or the tax administration or whether the proposal 
aims  to  prevent  certain  types  of  tax  evasion  or  avoidance.  In  this  context,  the 
Commission  has  always  taken  a  restrictive,  cautious  approach  to  ensure  that 
derogations do not undermine the operation of the general VAT system, are limited in 
scope and time, and necessary and proportionate. Any derogation from the system of 
fractioned  payment  can,  therefore,  not  be  more  than  a  last  resort  and  an  emergency 
measure for a limited time and must offer guarantees as to the necessity and exceptional 
nature of the derogation granted.  

Vegetables and fruits, due to their tangible and high-volume nature, can effectively be 
monitored  and  tracked  using  existing  systems.  These  goods  are  typically  subject  to 
physical transport across borders or domestically, making them ideal candidates for e-
transport and e-invoicing systems. These systems can provide real-time tracking and 
data  analysis  capabilities  that  allow  for  targeted  control,  thereby  ensuring  VAT 
compliance without applying the reverse charge mechanism. 

Romania has already implemented advanced systems like RO e-Invoice (a mandatory 
and  generalised  electronic  invoicing  system),  RO  e-Transport  (national  system  for 
monitoring road transport), RO e -Sigiliu (national system of electronic seals introduced 
to monitor road shipments of goods) and SAF-T (Standard Audit File for Tax). These 
systems are designed to enhance traceability and to provide detailed transaction data.  

This  data-driven  approach  should  enable  Romania  to  pinpoint  high-risk  transactions 
and to act more accurately, enhancing the efficiency of VAT fraud prevention. Targeted 
interventions  can  be  more  effectively  executed  without  disrupting  the  entire  trading 
sector through the reverse charge mechanism. 

Although perishability is noted as a concern that impacts VAT collection, the electronic 
systems  applied  in  Romania  can  be  used  to  handle  and  trace  perishable  goods 
effectively. These systems can account for the specific challenges of high turnover rates 
and ensure timely compliance checks that reduce opportunities for VAT fraud. 

By  using  these  tools,  Romania  can  conduct  detailed  risk  analyses  and  effectively 
combat VAT fraud within the domestic distribution chain of vegetables and fruits. 

The adoption of reverse charge mechanisms for vegetables and fruits may undermine 
the  transparency  and  functioning  of  the  conventional  VAT  system,  where  VAT  is 
collected incrementally along the supply chain. It might set a precedent that complicates 
future VAT enforcement efforts, through conventional measures, rather than enhancing 
transparency through established technological means. 

The reverse charge mechanism is proposed as a temporary solution until other systems 
become  fully  operational.  However,  most  of  the  systems  listed  before  are  already 
operational since quite some years and the use of these existing systems presents a more 

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sustainable solution for Romania. This approach would allow further developing and 
integrating mature technologies and provide for a sustainable solution which cannot be 
provided by the requested temporary derogation.  

4. 

CONCLUSION 

Based on the above-mentioned arguments, the Commission objects to the request made 
by Romania. 

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