Vestager re-iterates unilateral EU action if the OECD fails to agree on digital taxes
The Commission’s Executive Vice-President Vestager in charge of digitalisation has re-iterated that she would support EU member states’ national unilateral measures on digital taxation, should the OECD fail to reach an agreement this year.
In this context, Spain, France, Italy and the UK have declared that they would proceed with their respective national digital tax plans in such a scenario.
These intentions add pressure on the OECD’s Inclusive Framework to agree on common international rules, lest see the rise of a patchwork of national rules and potential trade conflicts.
European Commission publishes Work Plan 2020
On 29 January, the European Commission published its work programme for 2020, indicating the new policy proposals and Communications to be expected in 2020. For tax, two items to note:
- non-legislative communication on business taxation for the 21st century, focusing on the tax aspects of the Single Market, in Q1 2020
- a legislative proposal and action plan on the fight against tax evasion and to make taxation “simple and easy”, also in Q1 2020
Reportedly, both are to be expected on 25 March but this is to be confirmed.
The work programme also specifies that definitive VAT, C(C)CTB and public CBCR continue to be the Commission’s priorities for the year. Read more
Commission publishes Tax Policies in the EU Survey
The European Commission has published its latest tax policies in the EU survey.
The survey examines how EU member states’ tax systems perform in terms of fighting tax abuse, promoting sustainable investment, supporting job creation and employment, and mitigating inequalities. Read more
Commission plans to evaluate VAT rules for travel agents
The European Commission intends to evaluate the effectiveness of the current special VAT rules for travel agents; including the so-called margin scheme. A public consultation will be launched on the topic in March. Should the evaluation process demonstrate the need for reform, the Commission may propose amendments to existing rules. Read more