The present paper deals with the reverse charge mechanism in the European Union and Austria. In this specific mechanism´s case, supposing that the recipient of supplies or services is an entrepreneur, the entrepreneur must pay the Value Added Tax (VAT) instead of the supplier. Special attention will be paid to the extension of the mechanism into the field of all consummation of goods and services by business-to-business transactions. This would make it possible to fight carousel fraud and the insolvency of the supplying entrepreneur without any sales tax losses for financial authorities. However, additional administrative obligations would have to be introduced for entrepreneurs, to enable the tax administration to monitor the profits. The risk of liability would increase, since in this mechanism the entrepreneur would be held liable for the payment of VAT and this can lead to financial penalties for entrepreneur himself.