New Commission Single Market barrier report finds tax a major obstacle for SMEs
The European Commission has published a report that identified remaining Single Market barriers for companies.
Interestingly, the report finds that the lack of tax harmonisation remains one of the main obstacles faced by business when operating cross-border. It therefore calls for further efforts to reduce tax divergences and to reconsider the unanimity requirement in the Council.
The report also underlines that these tax divergencies are even greater for SMEs than other companies, and constitute a major barrier for SMEs’ operations across borders.
The report’s recommendations are not legally binding, but will inform the Commission’s future actions. Read more
Commission publishes circular economy action plan calling for greener VAT
The European Commission has published its circular economy Action Plan, which outlines the Commission’s views for what measures are needed to foster a more sustainable economy in Europe.
One of the measures that the Commission highlights in the Action Plan is green VAT. More specifically, the Commission wants to enable Member States to use VAT rates to promote circular economy activities that target final consumers, notably repair services. Read more
Commission clarifies timeline for upcoming tax initiatives
The European Commission has clarified the timeline for its upcoming major tax initiatives. On 10 June, the Commission will publish its Action Plan on the fight against tax fraud. And on 24 June, the Commission will publish its Communication for business taxation in the 21st century.
For further indications of what should be expected from these initiatives, see the previous Tax Policy Update and this article from Tax Journal.
Commission launches survey on transmission and exchange of payment data to fight VAT fraud
The European Commission has launched a survey for actors in the payment industry in order to gather their views on the implementation of the legislative package on the transmission and exchange of payment data in order to fight VAT fraud. The survey is open until 17 April. Read more