Postponement of taxation rules due to the COVID-19 crisis

Key points

The EESC:

• stresses that in view of the crisis triggered by the COVID-19 pandemic and the major disruption to the business environment caused by the exceptional measures imposed by the Member States the Committee endorses the package proposed by the European Commission aiming to extend deadlines for implementing the Directive on administrative cooperation in the field of taxation (DAC) and postponing the package regulating the VAT regime for cross-border e-commerce;
• considers that deferring the deadlines set for the VAT regime for cross-border e-commerce will result in the loss to the Member States of around EUR°3°billion and notes that the system can only be operational when all the Member States are prepared;
• recommends that the Member States take all measures necessary to ensure that the VAT regime for cross-border e-commerce becomes operational immediately after the current crisis;
• recognizes that the DAC and the package on the VAT regime for cross-border e-commerce are part of the EU rules on combating tax avoidance and fraud. Therefore, the Committee acknowledges the Commission's efforts to combat this damaging issue, but points out that only improved cooperation between the Member States will yield truly significant results;
• considers that the European Commission should also assist with the training of staff who will operate the new IT system necessary for implementing the new VAT regime for cross-border e-commerce;
• encourages the Member States to seek the maximum consensus possible in the shortest possible time, to make these measures applicable quickly.