Commission publishes Roadmap to grant it implementing powers on VAT
On 29 September, the Commission published a roadmap on its planned initiative to turn the VAT committee into a ‘comitology committee’ – enabling the Commission to adopt implementing rules on certain well-defined aspects of VAT, if the VAT committee approves.
The EU’s VAT committee – comprising representatives from national authorities and the Commission – aims to ensure EU rules on VAT are applied consistently across the bloc. However, it currently has ‘advisory’ status only.
This initiative was announced in the Commission’s 15 July tax package. Stakeholders can provide feedback to the Roadmap until 29 October. A Directive to make the initiative a reality is scheduled for fourth quarter of 2020. Read more
Commission publishes Explanatory Notes on the new VAT e-commerce rules
On 30 September, the Commission published Explanatory Notes on the new VAT e-commerce rules. They contain extensive explanations and clarifications on these new rules including practical examples on how to apply the rules if you are a supplier or an electronic interface (e.g. marketplace, platform) involved in e-commerce transactions.
These explanatory notes are meant to help online businesses and in particular SMEs to understand their VAT obligations arising from cross-border supplies to consumers in the EU. Read more
Commission will amend DAC to include alternative means of investment and payment in its scope
The European Commission will publish imminently a roadmap to amend the Directive on administrative cooperation on tax (DAC) to include within its scope alternative means of payment and investment (e.g. crypto-assets, e-money). The Commission fears that they may threaten to undermine progress made on tax transparency and pose substantial risks for tax evasion.
Stakeholders will be able to provide feedback on the Roadmap. A formal public consultation is scheduled for first quarter of 2021, and a legislative proposal in third quarter of 2021. Read more
Commission clarifies timeline of upcoming initiatives on taxpayers’ rights
European Commission roadmaps should also be imminently expected for its two initiatives on taxpayers’ rights.
The first one of these initiatives is a legally non-binding Communication that will analyse taxpayers’ rights in the EU Single Market, focusing on the rights of individuals, the self-employed and micro-enterprises. The Communication is scheduled for third quarter of 2021.
The second one is a soft law recommendation that will aim to facilitate tax compliance, encourage Member States to improve the relationship between tax administrations and taxpayers, ensure greater transparency and develop a service-oriented, digital-first approach. To this end, the Commission will identify and promote good administrative practices and enhance a better coordination of relevant national legislations in which taxpayers’ rights are embedded. A public consultation will be launched in the fourth quarter of 2020, and the recommendation published on the third quarter of 2021.