No progress in sight on public CBCR
At a meeting of EU company law attaches on 25 October, it became apparent that a resolution to the public country by country reporting (CBCR) limbo should not be expected anytime soon.
Before the meeting, there was some optimism in the air as German finance minister Olaf Scholz had announced his support for public CBCR, and the Finnish Presidency had committed to finding a solution.
However, at the meeting it became apparent that a growing number of member states now believe that public CBCR should be a tax file.
These countries include Cyprus, Malta, Germany, Austria, Hungary, Estonia, Luxembourg, Latvia, Ireland, Poland, Sweden, Czech Republic, Slovenia, Portugal, Croatia and Lithuania.
On the other side, France, Spain, Belgium, Denmark, Netherlands, Italy, Romania, Bulgaria, Greece and Slovakia defend the proposed legal base. Finland, for its part, is on the fence as its government is internally divided on the matter.
The Finnish Presidency will now have to decide whether or how it takes the file forward. Read more
Czech Republic granted right to apply generalised reverse charge mechanism
On 6 November, EU member states showed green light to Czech Republic applying the VAT generalized reverse charge mechanism (GRCM) from 1 January 2020 to 30 June 2022.
The GRCM was introduced into EU legislation in 2018 after a long battle in the Council, which included Czech Republic taking the VAT for e-publications file as ‘hostage’ to other member states approving the GRCM provision.
The GRCM applies only to the supply of services and goods for transactions above EUR 17,500 and in a member state where missing trader fraud accounts for at least 25% of the VAT gap. Czech Republic fulfils all the above conditions, and its government the GRCM to yield almost EUR 400 million.
Nine EU member states call for action on taxing aviation
The Netherlands, Germany, Belgium, Bulgaria, Denmark, France, Italy, Luxembourg and Sweden have issued a joint statement in which they call on the European Commission to propose measures to increase the price of aviation.
The countries argue that air tickets’ prices do not reflect the negative emission externalities of flying as they are exempted for example from excise duties and VAT for international flights. They also highlight that aviation accounts for about 2.5% of global CO2 emissions.
Therefore, the countries call for aviation taxation or “similar policies” that also take into account existing national policies, the competitiveness of the sectors affected, as well as the geographical distribution of transport infrastructure across EU member states. Read more