EC Action plan – 25 priorities defined. Fixed establishments and E-Invoicing only being worked in 2022/23

On July 15 , 2020, the European Commission issued an Action plan for a fair and simple taxation supporting the recovery strategy in a time of unprecedented challenge.

This tax package consists of three elements:
1. The present Communication, outlining an Action Plan for a fair and simple taxation supporting the recovery strategy and presenting a number of upcoming initiatives in the field of direct and indirect taxation.
2. A legislative proposal to revise the directive on administrative cooperation, which will:
– introduce an automatic exchange of information between Member States’ tax administrations for income/revenues generated by sellers on digital platforms. Information will help tax administrations verify that those who earn money through digital platforms pay the appropriate share of taxes; and
– strengthen administrative cooperation through the clarification of existing rules.
3. The Communication on “Tax good governance in the EU and beyond” will review progress made in enhancing tax good governance in the EU but also externally and suggest areas for improvement. We must act within the EU but also globally. The main areas for action will include:
– a reform of the Code of Conduct for Business Taxation,
– a review of the EU list of non-cooperative jurisdictions for tax purposes,
– improvements to reinforce tax good governance vis-à-vis EU funds and improved coordinated defensive measures by EU Member States, and
– support to developing country partners in enhancing tax good governance.

25 actions were defined which will be worked in 2020/2021 – see 25 actions summary vatupdate