20.3.2010 Official Journal of the European Union L 72/1 | (Legislative acts) DIRECTIVES COUNCIL DIRECTIVE 2010/23/EU of 16 March 2010 amending Directive 2006/112/EC on the common system of value added tax, as regards an optional and temporary application of the reverse charge mechanism in relation to supplies of certain services susceptible to fraud THE COUNCIL OF THE EUROPEAN UNION, (3)  The introduction of such a mechanism targeting these services, which according to recent experience are ) o particularly susceptible to fraud, as opposed to its Having regard to the Treaty on the Functioning of the European general application, should not adversely affect the funda- Union, and in particular Article 113 thereof, mental principles of the VAT system, such as fractionated payments. Having regard to the proposal from the European Commission, (4)  Member States should produce an evaluation report on Having regard to the opinion of the European Parliament ('), the application of the mechanism so as to enable an assessment of its efficiency. Having regard to the opinion of the European Economic and Social Committee (2), (5)  In order to assess the effect of the application of the mechanism on fraudulent activities in a transparent manner, evaluation reports by Member States should be Acting in accordance with a special legislative procedure, based on pre-defined criteria established by Member States. Any such evaluation should clearly assess the Whereas: level of fraud before and after the application of the : mechanism and any consequent shifts in trends of fraudulent activities, including supplies of other services. (1) Council Directive 2006/112/EC (%) specifies that value The report should also evaluate compliance costs for added tax (VAT) shall be payable by any taxable person taxable persons. carrying out transactions involving the taxable supply of goods and services. In the case of cross-border trans- o actions, and for certain domestic high-risk sectors such (6) Each Member State that has detected a shift in trends of as construction or waste, it is foreseen, however, to shift fraudulent activities in its territory in relation to the the obligation to pay VAT onto the person to whom the services under this Directive should produce a report in supply is made. that respect. (2)  Given the seriousness of VAT fraud, Member States (7)  In order to provide all Member States with the option of should be allowed to apply, on a temporary basis, a applying such a mechanism, a specific amendment to mechanism whereby the obligation to pay VAT shifts Directive 2006/112[EC is necessary. onto the person to whom allowances to emit greenhouse gases, as defined in Article 3 of Directive 2003/87[EC (), and other units that may be used for compliance with (8)  Since the objective of this Directive, namely to address the same Directive, are transferred. () Opinion of 10 February 2010 (not yet published in the Official Journal). () Opinion of 21 January 2010 (not yet published in the Official Journal). () OJ L 347, 11.12.2006, p. 1. (*) Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community (O] L 275, 25.10.2003, p. 32). VAT fraud through a temporary measure which derogates from existing Union rules, cannot be sufficiently achieved by the Member States and can therefore be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve that objective.