On 15 July 2020 the European Commission presented a tax package comprising three different but interrelated initiatives to be implemented from 2020 to 2024:

  1. Tax Action Plan for a fair and simple taxation that is suitable for a modern economy.
  2. A legislative proposal to extend administrative cooperation in relation to EU rules on taxation of digital platforms.
  3. The communication on tax good governance, proposing a reform of the Code of Conduct for Business Taxation, a review of the EU list of non-cooperative jurisdictions for tax purposes, and support for developing country partners in enhancing tax good governance.

The changes proposed as part of the Tax Action Plan affect all tax areas, but mainly VAT. Example initiatives:

  • single EU VAT registration,
  • modernised VAT reporting obligations and simplified e-invoicing,
  • updated VAT regulations on financial services,
  • consistency in how tax residency status is determined,
  • common, standardised EU-wide system for withholding tax relief at source,
  • information exchange mechanisms extended to include crypto-currencies and e-money,
  • establishment of expert group on transfer pricing,
  • e-commerce package for excise duties.

The second initiative sees the Commission not only laying down a general framework but having already come forward with a proposal for DAC7 directive to amend Directive 2011/15/EU. The purpose is to establish transparent rules for the taxation of users of digital platforms by exchanging information about their particulars and revenues generated on such platforms, and by joint audits by different Member States.

For details of the tax package, see this link:

https://ec.europa.eu/taxation_customs/general-information-taxation/eu-tax-policy-strategy/package-fair-and-simple-taxation_en

We will keep you up-to-date on the progress of this project.

If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant.

Doradztwo Podatkowe WTS&SAJA Sp. z o.o.

Bałtyk Building, 13th floor

ul. Roosevelta 22

60-829 Poznań

tel. (+48) 61 643 45 50

Warsaw Office

Central Tower, 22nd floor

Al. Jerozolimskie 81

02-001 Warszawa

This Newsletter is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries.Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.