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SPECIAL LEGISLATIVE procedure
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
Follow up to the European Parliament legislative resolution on the proposal for a Council directive amending Directive 2006/112/EC as regards VAT rules for the digital age and to the legislative resolution on the proposal for a Council regulation amending Regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements needed for the digital age
1. Rapporteur: Olivier CHASTEL (Renew / BE)
(COM(2022)0701 – C90021/2023 – 2022/0407(CNS))
2. Reference numbers: 2022/0407 (CNS) / A9-0327/2023 / P9_TA(2023)0421; 2022/0409 (CNS) / A9-0324/2023 / P9_TA(2023)0422
(Special legislative procedure – consultation)
3. Date of adoption of the resolution: 22 November 2023
The European Parliament,
4. Legal basis: Article 113 of the Treaty on the Functioning of the European Union
– having regard to the Commission proposal to the Council (COM(2022)0701),
5. Competent Parliamentary Committee: Committee on Economic and Monetary affairs (ECON)
– having regard to Article 113 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C90021/2023),
6. Commission's position: accepts some amendments.
– having regard to Rule 82 of its Rules of Procedure,
Part I General points
– having regard to the report of the Committee on Economic and Monetary Affairs (A9-0327/2023),
Topic 1 – On the proportionality of the measures, and the impact on data protection
1. Approves the Commission proposal as amended;
Amendments 1, 2, 3, 4, 5, 10, 13, 22, 29 and 50 of the resolution on the directive, and amendments 13, 14 and 24 of the resolution on the regulation call for amendments specifically referring in the text of the proposals to the need to respect the principle of proportionality and the rules regarding data protection.
2. Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;
Commission position: accept the spirit of the amendments but reject the amendments as such.
3. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;
The Commission agrees that issues of proportionality and the rules regarding data protection are extremely important when considering legislative proposals, and in drafting the legislation, the Commission has already considered carefully the proportionality of the measures in the package, in particular during the process of drafting the accompanying impact assessment. In addition, the Commission has consulted the EU Data Protection Supervisor (EDPS) prior to the adoption of its proposal and ensured the measures’ compliance with their guidelines. The opinion of EDPS is positive on the proposal in that it notably complies with the principle of data minimisation. Therefore, whilst the Commission agrees with the spirit of the European Parliament’s recommendations, this issue is already covered in the proposal.
4. Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal;
Topic 2 – Amendments related to incentives, guidance or technical support to be provided by the Commission and Member States in the implementation phase
5. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Amendments 35, 57, 64, 86 of the resolution on the directive, and amendments 12 and 46 of the resolution on the regulation call on the Commission to provide incentives to small platforms to comply with the rules (Platform), to publish the EU standard on electronic invoicing (Directive 2014/55/EU of the European Parliament and of the Council of 16 April 2014 on electronic invoicing in public procurement (OJ L 133, 6.5.2014, p. 1)) on its website (Digital Reporting Requirements DRR); to give support to Member States in the development of their national systems (DRR); to develop software for businesses to report to tax administrations (DRR); to provide ‘practical solutions’ to reduce the costs of implementation (DRR), and for Member States to provide guidance to small businesses who would wish to register for VAT (Platforms).
Amendment 1
Commission position: accept the spirit of the amendments but reject the amendments as such.
Proposal for a directive
The Commission understands that these are new and somehow complex measures, the implementation of which would require guidance and technical support for both businesses and Member States. The EU standard on electronic invoicing is already published on the Commission’s website, and the Commission is already committed to assisting the Member States in the development of their national systems. However, the development of the software for businesses to report to national systems needs to be developed by the Member States themselves in order for the systems to be compatible with the Member States’ legacy systems already in place. The Commission will provide detailed explanatory notes following the adoption of the measures, which will give further information and guidance for businesses and Member States on their practical application. It should be noted that the VAT in the Digital Age (ViDA) package brings significant simplification and reduction of costs for small and medium sized enterprises (SMEs), notably in terms of reporting requirements.
Recital 1 a (new)
Topic 3 – On the sharing of central VAT Information Exchange System (VIES) data with OLAF, EPPO and Europol
Amendment 2
Amendment 26 in the resolution on the directive, and amendments 5, 7, 15-17, 27, 29, 31-33, 54-56, 58 in the resolution on the regulation call for the sharing of VIES data with the EPPO, OLAF and EUROPOL in order to help those agencies combat fraud.
Proposal for a directive
Commission position: accept the spirit of the amendments but reject the amendments as such.
Recital 1 b (new)
The granting of other bodies access to central VIES data will be subject to a specific Commission proposal in 2024 that will cover in depth the cooperation of Member States with other entities for the fight against VAT fraud. Therefore, it is not appropriate to have such measures in this proposal, which would be also premature given that the establishment of the central VIES has not yet been agreed. The dedicated proposal will address the issue more broadly and will include solutions that will take effect before the development of the central VIES. In particular, it will include an improvement of the current framework of cooperation of Eurofisc with OLAF and Europol on the one hand, and the inclusion of the EPPO in the Regulation 904/2010 to strengthen its access to VAT information at EU level on the other hand. In all cases, the information shared through this new framework would include information from VIES relevant for the exercise of the competences of the referred bodies while the direct access to central VIES for all of them may raise critical issues in terms of proportionality. The Commission, after analysis of the impacts including on the right to the protection of personal data, can ensure that the processing of personal data under the proposal is limited to what is necessary and proportionate.
Amendment 3
Topic 4 – The Commission should carry out studies on the effective implementation of various elements of the proposal
Proposal for a directive
Amendments 30, 65, 76 and 109 of the resolution on the directive call for the Commission to carry out studies on the effectiveness of the deemed supplier measure, on the impact of Article 194 on the Missing Trader Intra-Community (MTIC) fraud, and insert a review clause for the One Stop Shop.
Recital 1 c (new)
Commission position: accept the amendments.
Amendment 4
The Commission can agree that a review of the measures of the package is a sensible approach and will commit to proposing to Council the inclusion of a mid-term review.
Proposal for a directive
Topic 5 – On the timing of implementation of the Proposal
Recital 1 d (new)
Amendments 49, 53, 60, 61, 82 and 103-108 in the resolution on the directive and amendments 28, 41, 62 and 63 in the resolution on the regulation call for the delayed implementation of various elements of the measures.
Amendment 5
Commission position: accept the spirit of the amendments but reject the amendments as such.
Proposal for a directive
The Commission recognises and agrees with the European Parliament that the timing of the implementation of the measures is an important element, as there must be sufficient time for both business and Member States to properly and carefully implement the necessary changes. This is why, when negotiations on the implementation dates take place in Council (towards the end of the negotiations), the Commission will support a realistic and necessary timeframe for implementation. However, the Commission cannot support a gradual implementation which is dependent on the size of business as the changes impact altogether taxable persons that are interrelated. This would in any case be too complex for businesses and tax administrations to implement. However, in the implementation of certain measures, Member States will still be allowed to make a distinction (e.g. they can impose a digital reporting requirement to certain businesses only, they can allow for the issuance of paper invoices provided that they are not implementing a digital reporting requirement).
Recital 2
Topic 6 – Information regarding Implementing Acts to be shared with European Parliament.
Amendment 6
Amendment 73 in the resolution on the directive and amendments 16, 40, 45, 48, 59-61 in the resolution on the regulation call for the Commission to inform the European Parliament of draft implementing acts in relation to the measures.
Proposal for a directive
Commission position: accept the spirit of the amendments but reject the amendments as such.
Recital 3
The Commission agrees that the European Parliament has a right to exercise its rights of scrutiny of the Commission under Comitology Regulation 182/2011 and note that the European Parliament is already kept informed during the preparation of implementing acts in accordance with that regulation. Therefore, it would be inappropriate to explicitly say this in the legal text.
Amendment 7
Topic 7 – On the link between this proposal and the definitive regime
Proposal for a directive
Amendments 6, 7, 9 and 11 of the resolution on the directive make a link in the recitals between this proposal and the definitive VAT regime, making reference to the evolution of the VAT gap and the structure of Missing Trader Intra-Community fraud.
Recital 3 a (new)
Commission position: reject the amendments.
Amendment 8
The ViDA initiative does not replace the definitive VAT regime, and it is not within the remit of this proposal to refer to the definitive regime and how it may impact the current VAT system.
Proposal for a directive
Topic 8 – Amendments relating to the storage of data
Recital 3 b (new)
Amendments 24, 78 of the resolution on the directive, and amendment 30 of the resolution on the regulation ask that information collected should not be stored outside the EU, either by the Member States, the businesses, or third parties.
Amendment 9
Commission position: reject the amendments.
Proposal for a directive
It should be recalled that EU Member States, businesses and third parties are bound by existing data protection rules, including when transferring (and storing) data outside the EU. The EU’s data protection rules do not require personal data to be stored in the EU, but instead allow it to be transferred outside the EU as long as continuity of protection is ensured (e.g. by putting in place data protection safeguards by means of a contract or arrangement). Moreover, also from the perspective of trade, businesses should be free to choose whether to store the data themselves or have it stored by third parties and should be free to choose where data will be stored in accordance with their business processes and practices, in full respect of the Union data protection rules.
Recital 3 c (new)
Part II – Amendments specifically relating to Digital Reporting Requirements (DRR)
Amendment 10
Topic 9 – Amendments relating to the content and timing of invoices.
Proposal for a directive
Amendments 85 and 89-94 of the resolution on the directive concern the timing and content of invoices. They include an amendment changing the timing of the date of issuance of invoices, changes to the treatment of corrective invoices, removing the necessity to include IBAN (where available) and the date of payment on invoices, and a change of the date from which businesses have 3 days to send the data (from date of issuance of invoice to date they are posted in the accounts).
Recital 4
Commission position: accept the spirit of the amendments but reject the amendments as such.
Amendment 11
The content of invoices has been considered carefully in order for Member States to have sufficient information necessary to fight fraud, whilst not putting too high a burden on businesses. The timings of when an invoice is issued and when the data is transmitted aim to allow for as real-time reporting as possible. Nevertheless, this element is still under discussion in Council where Member States are considering allowing more time for the issuance of invoices.
Proposal for a directive
Topic 10 – The use of summary invoices
Recital 4 a (new)
Amendments 19 and 88 in the resolution on the directive aims to reintroduce the use of summary invoices.
Amendment 12
Commission position: accept the amendments.
Proposal for a directive
The Commission proposed abolishing the use of summary invoices on the reasoning that this would not be necessary alongside real-time reporting. However, the debate in Council has shown that it would be beneficial for businesses to continue allowing for the option of summary invoices. Whilst it is still to be decided by Member States, the Commission should support the re-introduction of this measure.
Recital 4 b (new)
Topic 11 – Alterations to the scope and operation of the DRR measure
Amendment 13
Amendments 25, 54, 56, 58 in the resolution on the directive aim to restrict the scope of the measure – namely to remove the interdiction on pre-authorisation; to restrict the definition of e-invoicing to intra-EU cross-border sales; to restrict Member States’ abilities to introduce e-invoicing from the date of entry into force of the directive; allowing Member States to ask for data not drawn from e-invoices for certain transactions, and not applying the DRR measures to defence related supplies.
Proposal for a directive
Commission position: reject the amendments.
Recital 4 c (new)
The amendments alter the scope and operation of the DRR measure, adding complexity for businesses and Member States, with no corresponding increase in effectiveness. For example, to have a definition of e-invoicing which only applies to intra-EU sales and not domestic supplies would lead to a situation in which a business may be required to have at least two separate invoicing systems, one for domestic trade and one for cross-border trade. Further, it is not proposed to have sectoral exclusions, as they would further complicate the operation of the measure.
Amendment 14
Part III – Amendments specifically relating to platforms
Proposal for a directive
Topic 12 – Clarification of the scope of the measure
Recital 5
Amendments 66 and 77 in the resolution on the directive clarify that the deemed supplier regime applies to passenger transport ‘within the Union’.
Amendment 15
Commission position: accept the amendments.
Proposal for a directive
This is a necessary clarification which is also supported by the Council.
Recital 6
Topic 13 – Restrictions of the scope of the deemed supplier measure and its application
Amendment 16
Amendments 36, 37, 68, 71 and 72 in the resolution on the directive aim to restrict the scope of the measure by not applying it to SMEs and any supply which would otherwise be exempt. In addition, the resolution asks for the deletion of the provision harmonising the treatment of the facilitation service and for the introduction of the concept of ancillary services when defining short-term accommodation rental.
Proposal for a directive
Commission position: reject the amendments.
Recital 6 a (new)
The European Parliament has recommended excluding from the scope of the deemed supplier measure any supply of short-term accommodation rental or passenger transport which would be exempt if it had not been supplied via a platform. Restricting the scope of the deemed supplier measure in such a way would defeat the main aim of the proposal, that of harmonising the treatment of the largely untaxed platform economy and the traditional, largely taxed economy in these sectors. In taxing these supplies however, the proposal does not put the burden of taxation on the underlying supplier, but on the platforms, which are better equipped to comply with the corresponding VAT obligations. It should be noted that platforms themselves which are exempt under the SME scheme are already excluded from the deemed supplier measure, and this is already clarified in the proposal. The amendments concerning the facilitation service and the definition of short-term accommodation rental would cancel the harmonisation the proposal seeks to achieve.
Amendment 17
Part IV – Amendments specifically relating to Single VAT Registration (SVR)
Proposal for a directive
Topic 14 – Changes to the scope of the measure
Recital 7
Amendments 38-40 and 79-81 of the resolution on the Directive call for changes on the scope of the measure. In particular, relating to the definition of a transfer of own goods; the conditions for exclusion from the transfer of own goods scheme and the stipulation that the return can be made out in the national currency.
Amendment 18
Commission position: accept the spirit of the amendments but reject the amendments as such.
Proposal for a directive
Regarding the definition of transfers of own goods, the latest Council compromise text extends the scope of the new transfer of own goods scheme to capital goods but still excludes transfers of goods without a full right of deduction. The Commission can support this text as it captures a broader range of goods while not opening issues linked to the partial deductibility. The suggestion to remove the exclusion condition from this scheme when the activity of the taxpayer has ceased cannot be accepted, as it mirrors the conditions applied in the other One Stop Shop (OSS) schemes and in any event does not prevent the taxable person to re-register in those schemes when their activities resume. Finally, the text already allows for the return to be made out in currencies other than the Euro.
Recital 9
Topic 15 – Timing of the information to be shared between Member States
Amendment 19
Amendments 34, 35, 36 and 39 of the resolution on the regulation change the deadlines for various information to be transmitted between Member States for the OSS scheme.
Proposal for a directive
Commission position: reject the amendments.
Recital 10 a (new)
These timings are already in application for all OSS schemes and should not be reviewed as they ensure proper and quick exchange of information between the Member States. Any changes, if needed, would have to be decided by Member States on the basis of their capabilities and resources.
Amendment 20
Part V – amendments specifically relating to Administrative Cooperation
Proposal for a directive
Topic 16 – That central VIES shall guarantee data protection.
Recital 12
Amendments 43, 50-53 and 57 of the resolution on the regulation call for the use of technology to guarantee the protection of data and that there is a secure, resilient and reliable infrastructure.
Amendment 21
Commission position: accept the spirit of the amendments but reject the amendments as such.
Proposal for a directive
The responsibilities regarding the VIES system already exist (in Article 24m), and the security requirements are already set in Article 55 of the regulation. The security measures will be specified during the implementation phase. Therefore, it is not necessary to repeat the need for a secure and resilient system throughout the main act.
Recital 13
Amendment 22
Proposal for a directive
Recital 14
Amendment 23
Proposal for a directive
Recital 15
Amendment 24
Proposal for a directive
Recital 16 a (new)
Amendment 25
Proposal for a directive
Recital 16 b (new)
Amendment 26
Proposal for a directive
Recital 16 c (new)
Amendment 27
Proposal for a directive
Recital 17
Amendment 28
Proposal for a directive
Recital 18
Amendment 29
Proposal for a directive
Recital 18 a (new)
Amendment 30
Proposal for a directive
Recital 19
Amendment 31
Proposal for a directive
Recital 20
Amendment 32
Proposal for a directive
Recital 20 a (new)
Amendment 33
Proposal for a directive
Recital 22
Amendment 34
Proposal for a directive
Recital 23
Amendment 35
Proposal for a directive
Recital 23 a (new)
Amendment 36
Proposal for a directive
Recital 23 b (new)
Amendment 37
Proposal for a directive
Recital 24
Amendment 38
Proposal for a directive
Recital 31 a (new)
Amendment 39
Proposal for a directive
Recital 31 b (new)
Amendment 40
Proposal for a directive
Recital 32
Amendment 41
Proposal for a directive
Recital 33
Amendment 42
Proposal for a directive
Recital 35 a (new)
Amendment 43
Proposal for a directive
Recital 36
Amendment 44
Proposal for a directive
Recital 38
Amendment 45
Proposal for a directive
Recital 39
Amendment 46
Proposal for a directive
Recital 39 a (new)
Amendment 47
Proposal for a directive
Recital 39 b (new)
Amendment 48
Proposal for a directive
Recital 41 a (new)
Amendment 49
Proposal for a directive
Recital 41 b (new)
Amendment 50
Proposal for a directive
Recital 41 c (new)
Amendment 51
Proposal for a directive
Recital 41 d (new)
Amendment 52
Proposal for a directive
Recital 41 e (new)
Amendment 53
Proposal for a directive
Article 1 – title
Amendment 54
Proposal for a directive
Article 1 – paragraph 1 – point 6
Directive 2006/112/EC
Article 217
Amendment 55
Proposal for a directive
Article 1 – paragraph 1 – point 7
Directive 2006/112/EC
Article 218 – paragraph 1
Amendment 56
Proposal for a directive
Article 1 – paragraph 1 – point 7
Directive 2006/112/EC
Article 218 – paragraph 2
Amendment 57
Proposal for a directive
Article 1 – paragraph 1 – point 7
Directive 2006/112/EC
Article 218 – paragraph 2 a (new)
Amendment 58
Proposal for a directive
Article 1 – paragraph 1 – point 7
Directive 2006/112/EC
Article 218 – paragraph 2 b (new)
Amendment 59
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2006/112/EC
Article 232
Amendment 60
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2006/112/EC
Article 232
Amendment 61
Proposal for a directive
Article 2 – title
Amendment 62
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point a
Directive 2006/112/EC
Article 14a – paragraph 2
Amendment 63
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point b
Directive 2006/112/EC
Article 14a – paragraph 3
Amendment 64
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point b
Directive 2006/112/EC
Article 14a – paragraph 4 a (new)
Amendment 65
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point b
Directive 2006/112/EC
Article 14a – paragraph 4 b (new)
Amendment 66
Proposal for a directive
Article 2 – paragraph 1 – point 3
Directive 2006/112/EC
Article 28a – paragraph 1 – introductory part
Amendment 67
Proposal for a directive
Article 2 – paragraph 1 – point 3
Directive 2006/112/EC
Article 28a – paragraph 1 – point f
Amendment 68
Proposal for a directive
Article 2 – paragraph 1 – point 3
Directive 2006/112/EC
Article 28a – paragraph 1 a (new)
Amendment 69
Proposal for a directive
Article 2 – paragraph 1 – point 4
Directive 2006/112/EC
Article 35
Amendment 70
Proposal for a directive
Article 2 – paragraph 1 – point 4
Directive 2006/112/EC
Article 35
Amendment 71
Proposal for a directive
Article 2 – paragraph 1 – point 6
Directive 2006/112/EC
Article 46a
Amendment 72
Proposal for a directive
Article 2 – paragraph 1 – point 7
Directive 2006/112/EC
Article 135 – paragraph 3
Amendment 73
Proposal for a directive
Article 2 – paragraph 1 – point 10
Directive 2006/112/EC
Article 143 – paragraph 1a – subparagraph 1
Amendment 74
Proposal for a directive
Article 2 – paragraph 1 – point 12
Article 2006/112/EC
Article 194 – paragraph 1
Amendment 75
Proposal for a directive
Article 2 – paragraph 1 – point 12
Directive 2006/112/EC
Article 194 – paragraph 1 a (new)
Amendment 76
Proposal for a directive
Article 2 – paragraph 1 – point 12
Directive 2006/112/EC
Article 194 – paragraph 2 a (new)
Amendment 77
Proposal for a directive
Article 2 – paragraph 1 – point 14 – point a
Directive 2006/112/EC
Article 242a – paragraph 1a
Amendment 78
Proposal for a directive
Article 2 – paragraph 1 – point 14 – point b
Directive 2006/112/EC
Article 242a – paragraph 2 – subparagraph 2
Justification
Clarifying the text
Amendment 79
Proposal for a directive
Article 2 – paragraph 1 – point 27
Directive 2006/112/EC
Article 369xa – paragraph 1 – point 1
Amendment 80
Proposal for a directive
Article 2 – paragraph 1 – point 27
Directive 2006/112/EC
Article 369xe – paragraph 1 – point b
Amendment 81
Proposal for a directive
Article 2 – paragraph 1 – point 27
Directive 2006/112/EC
Article 369xh – paragraph 1 – subparagraph 1
Amendment 82
Proposal for a directive
Article 3 – title
Amendment 83
Proposal for a directive
Article 4 – paragraph 1 – point 2
Directive 2006/112/EC
Article 138 – paragraph 1a
Amendment 84
Proposal for a directive
Article 4 – paragraph 1 – point 3
Directive 2006/112/EC
Article 218
Amendment 85
Proposal for a directive
Article 4 – paragraph 1 – point 4
Directive 2006/112/EC
Article 222 – paragraph 1
Amendment 86
Proposal for a directive
Article 4 – paragraph 1 – point 4
Directive 2006/112/EC
Article 222 – paragraph 1 a (new)
Amendment 87
Proposal for a directive
Article 4 – paragraph 1 – point 4
Directive 2006/112/EC
Article 222 – paragraph 1 b (new)
Amendment 88
Proposal for a directive
Article 4 – paragraph 1 – point 5
Directive 2006/112/EC
Article 223
Amendment 89
Proposal for a directive
Article 4 – paragraph 1 – point 6
Directive 2006/112/EC
Article 226 – paragraph 1 – point 16
Amendment 90
Proposal for a directive
Article 4 – paragraph 1 – point 6
Directive 2006/112/EC
Article 226 – paragraph 1 – point 17
Amendment 91
Proposal for a directive
Article 4 – paragraph 1 – point 6
Directive 2006/112/EC
Article 226 – paragraph 1 – point 18
Amendment 92
Proposal for a directive
Article 4 – paragraph 1 – point 6
Directive 2006/112/EC
Article 226 – paragraph 1 – 18 a (new)
Amendment 93
Proposal for a directive
Article 4 – paragraph 1 – point 9 – point a
Directive 2006/112/EC
Article 262 – paragraph 1 – introductory part
Amendment 94
Proposal for a directive
Article 4 – paragraph 1 – point 10
Directive 2006/112/EC
Article 263 – paragraph 1 – subparagraph 1
Amendment 95
Proposal for a directive
Article 4 – paragraph 1 – point 10
Directive 2006/112/EC
Article 263 – paragraph 1 – subparagraph 3
Amendment 96
Proposal for a directive
Article 4 – paragraph 1 – point 10
Directive 2006/112/EC
Article 263 – paragraph 2 a (new)
Amendment 97
Proposal for a directive
Article 4 – paragraph 1 – point 17
Directive 2006/122/EC
Article 271a – paragraph 1
Amendment 98
Proposal for a directive
Article 4 – paragraph 1 – point 17
Article 2006/112/EC
Article 271a – paragraph 2
Amendment 99
Proposal for a directive
Article 4 – paragraph 1 – point 17
Directive 2006/112/EC
Article 271b – paragraph 1
Amendment 100
Proposal for a directive
Article 4 – paragraph 1 – point 17
Directive 2006/112/EC
Article 271b – paragraph 2 a (new)
Amendment 101
Proposal for a directive
Article 4 – paragraph 1 – point 17
Directive 2006/112/EC
Article 271c – paragraph 1
Amendment 102
Proposal for a directive
Article 4 – paragraph 1 – point 18
Directive 2006/112/EC
Article 273 – paragraph 1
Amendment 103
Proposal for a directive
Article 5 – paragraph 1 – subparagraph 1
Amendment 104
Proposal for a directive
Article 5 – paragraph 1 – subparagraph 2
Amendment 105
Proposal for a directive
Article 5 – paragraph 2 – subparagraph 1
Amendment 106
Proposal for a directive
Article 5 – paragraph 2 – subparagraph 2
Amendment 107
Proposal for a directive
Article 5 – paragraph 3 – subparagraph 1
Amendment 108
Proposal for a directive
Article 5 – paragraph 3 – subparagraph 2
Amendment 109
Proposal for a directive
Article 5 a (new)
EXPLANATORY STATEMENT
The European Commission proposed on December 8, 2022 a package of new measures updating the VAT Directive (2006/112/EC), the Council Implementing Regulation (EU) 282/2011 and the Council Regulation on administrative cooperation (EU 904/2010) to adapt to new digital business models and to allow the full use of data generated by digitization.
These proposed directive and regulations are expected to enter into force gradually between January 2024 and January 2028. Your rapporteur believes that these deadlines should, given the delay in the legislative process, be postponed by at least one year overall.
With these measures, the Commission hopes to reduce the VAT gap, better combat VAT fraud, ensure the proper functioning of the internal market and put an end to distortions of competition.
In this respect, your rapporteur stresses the need to respect the principle of proportionality between the objective of combating fraud and the difficulties that might arise in applying the proposed rules to the real life of businesses. The fight against fraud must not be to the detriment of the majority of businesses that work in transparency and good faith.
Similarly, the digital package must respect the fundamental rights to privacy and personal data protection. Therefore, the transmission of partial data can only be used by the competent administrative authority in the context of the fight against VAT fraud only and may not infringe on business secrets and personal data protection.
With the switch to real-time digital declaration based on electronic invoicing, stricter conditions will be imposed on companies carrying out intra-European transactions for all B2B deliveries of goods and services in the name of the fight against fraud.
Your rapporteur underlines the additional burdens that the implementation of this system will create for businesses. He recalls that the impact assessment states “Businesses will bear the costs of the additional administrative burden arising from the introduction of real-time digital declaration. This burden will be higher for micro and small enterprises”. Therefore, your rapporteur believes that these measures should be accompanied by incentives for businesses to encourage the optimal implementation of VAT in the Digital Age.
Your rapporteur believes that the two working day deadline for issuing and declaring invoices is not realistic for businesses, especially SMEs, and should be reviewed to a ten working days basis. Similarly, the deletion of the possibility of issuing summary invoices runs counter to the principles of flexibility and simplicity that govern this proposal.
Your rapporteur stresses that the proposals must be simple, effective and balanced for all parties concerned, in particular for SMEs, VSEs and Not-profit-bodies.
As regards the updating of the VAT rules applicable to passenger transport and short-term accommodation platforms, justified by the emergence of new business models, your rapporteur recalls that these new measures must be clear, non-discriminatory and neutral. He believes that the liability of the "presumed supplier/provider" instead of the "underlying provider" could increase the final price for the consumer.
Finally, your rapporteur considers that the Single registration is one of the improvements most appreciated by EU companies, especially SMEs, which have a real need for simplification of intra-EU declaration procedures. Nevertheless, your rapporteur is concerned that the mandatory reverse charge will lead to an increase in VAT fraud and proposes that an independent study must be carried out on the reduction of VAT fraud in case of taxation of intra-Community supplies of goods and services.
Furthermore, the inclusion of second-hand goods in the UOSS system could be problematic because it is not possible for a marketplace to know the margin made by a third-party seller.
PROCEDURE – COMMITTEE RESPONSIBLE
FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE