Tax Action Plan
In July 2020, the European Commission adopted a new tax package aimed at ensuring economic recovery and long-term growth for Europe. With a 25-point tax action plan, the European Commission is once again focusing on improving tax justice by combating tax abuse, curbing unfair tax competition and increasing tax transparency (press release IP / 20/1334 of July 15, 2020).
Considered measure | Affected legislation | Scheduled for |
Amendment of the VAT Directive in order to create a common VAT registration in the EU, with which deliveries or services subject to VAT can be carried out across the EU. | Council Directive 2006/112 / EC of 11/28/2006 | 2022/2023 |
Evaluation of digital solutions to improve the use of data, create digital services for taxpayers and to improve cooperation between tax authorities. | 2022/2023 | |
Initiative to support and promote corporate tax compliance. | 2021 | |
Modernization of VAT reporting requirements in order to achieve a faster and more detailed exchange of information between tax authorities. | 2022/2023 | |
Change of the VAT guideline in order to integrate all B2C sales into the authority of the VAT-“One Stop Shop”. | Council Directive 2006/112 / EC of 11/28/2006 | 2022/2023 |
Recommendations to improve the recovery of outstanding tax claims. | 2020/2021 | |
Proposal for a uniform regulation of tax residence for the European market. |
2022/2023 |
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Proposal for a uniform regulation of withholding tax relief and the necessary information exchange and coordination mechanisms. | 2022/2023 | |
Amendment of the EU VAT Regulation in order to establish the EU's competence to combat VAT fraud within the framework of Eurofisc and to expand Eurofisc's area of responsibility beyond VAT. | Council Regulation 904/2010 of 07.10.2010 | 2022/2023 |
Amendment to the guideline on administrative cooperation to include digital means of payment (e.g. e-money) and digital investments (e.g. crypto assets). | 2021 | |
Creation of a European tax observatory body to monitor current trends in tax avoidance and to support the development of evidence-based measures. | 2020/2021 | |
Amendment of the EU VAT Regulation to make cross-border transactions verifiable through an automated exchange of information. | Council Regulation 904/2010 of 07.10.2010 | 2022/2023 |
Amendment to the EU VAT Regulation to make cross-border transactions easier for companies that comply with the relevant rules and to focus controls on companies that violate them. | Council Regulation 904/2010 of 07.10.2010 | 2022/2023 |
Recommendation to start treaty negotiations on administrative cooperation agreements with relevant third countries. | 2022/2023 | |
Control of the effectiveness of the dispute settlement mechanisms set out in the Council Directive on tax dispute resolution mechanisms in the EU. | Council Directive 2017/1852 of 10/10/2017 | 2020/2021 |
Proposal to create mechanisms to avoid and resolve disputes in the field of VAT. | 2022/2023 | |
Publication of a compilation of the existing rights of taxpayers in European law and recommendations to the member states to support the implementation of these rights. | 2020/2021 | |
Change in VAT regulations for financial services. | 2020/2021 | |
Upgrade of the VAT committee to a comitological body that can monitor the adoption of implementing acts by the EU Commission with a qualified majority. | Council Directive 2006/112 / EC of 11/28/2006 | 2020/2021 |
Organization of a conference on data analysis and digital solutions. | 2021 | |
Creation of an expert group for transfer pricing to develop pragmatic and non-legislative solutions to specific problems. | 2020/2021 | |
Simplification of the specific VAT regulation for travel agencies. | Council Directive 2006/112 / EC of 11/28/2006 | 2022/2023 |
Adaptation of the regulatory framework for VAT to the digital platform economy. | Council Directive 2006/112 / EC of 11/28/2006 | 2022/2023 |
Review of tax exemptions in the area of passenger transportation. | Council Directive 2006/112 / EC of 11/28/2006 | 2022/2023 |
Amendment of the General System of Excise Duty Directive to facilitate the distance sale of excise goods. | Council Directive 2006/112 / EC of 11/28/2006 | 2022/2023 |
Administrative cooperation
A central feature of the tax package is the proposal that the member states exchange information on the income generated by online sellers who carry out their activities on internet platforms. This is intended to secure tax revenue and combat tax abuse.
Reform of the code of conduct
The European Commission also proposes an update of the EU list of non-cooperative countries and areas. This "black list” includes third countries that do not comply with the internationally agreed standards for combating tax abuse.
2030 Agenda
The EU will also improve administrative cooperation with developing countries in order to secure tax revenue. This initiative is in line with the planned 2030 Agenda for Sustainable Development.
The European Commission’s tax package outlines significant changes in several fields of taxation for the years to come. Companies that carry out their business activity on the European market should be aware of upcoming developments and include them into their tax planning.
Stand: 22. Oktober 2020