Three priorities relating to tax (and with an effect on VAT):
- Implementation of the Organisation for Economic Co-operation and Development (OECD) proposals on addressing the tax challenges arising from the digitalization of the economy in the EU
- Introduction of a financial transaction tax at the European level
- Revision of the directive on administrative cooperation in the field of taxation
“The tax burden must be distributed fairly and transparently […]. The OECD is currently drafting reform proposals that are intended to address in an effective manner the tax challenges arising from the digital transformation and which comprise the introduction of a minimum global effective tax rate. Following the conclusion of negotiations, we want to press ahead with implementing the results in the EU.
We are also committed to the introduction of a financial transaction tax at European level. The increasing mobility of citizens, businesses and wealth requires Member States’ tax authorities to work together in order to simplify taxation. It is with this in mind that we want to revise the directive on administrative cooperation in the field of taxation. One of the aims behind this is to tackle tax evasion in an effective manner.”
Source: EU2020
Source: Europa Nu
Source EY
Note from the editors: Besides dealing with the Covid-19 crisis in the EU, another key topic that the EU will have to tackle in the coming months is the Brexit. The negotiations are going far from smoothly, and the possibility that there is going to be a no-deal Brexit is growing stronger every day. Although this has been side-stepped and postponed before every deadline so far. businesses must still be prepared to deal with a no-deal Brexit, which will have an impact on the VAT and customs requirements.
