The EESC urges EU Member States to intensify their coordination on tax matters at European and international level with a view to the digital and collaborative economy. A closer coordination of tax policies applicable to the new economic sector and devising instruments and working solutions could improve tax compliance, assure fair competition and tap the full potential of this new economic sector.

While the EESC welcomes the existing cooperation of the European Commission, the EU Member States and the OECD/G20 on this issue, it encourages the Member States, in an opinion that was adopted by the EESC plenary on 15 July 2020, to find solutions at EU level if international agreement is not reached as planned by the end of 2020 and cannot be expected in the foreseeable future.

The Committee proposed clear and harmonised reporting obligations for digital and collaborative businesses and a functional and proportionate system for collecting and exchanging data at EU level if international agreement is lagging behind.

At the EESC plenary session, the rapporteur of the opinion, Ester Vitale, drew special attention to the urgent need for action. "Taxation and tax policies must adapt to the constant developments in the collaborative economy. International, European and national institutions must act effectively and rapidly in order to deal with the challenges it poses. A solution should, preferably, be found at international or even global level," Ms Vitale said and specified that "current tax rules and models must be adapted to the new business environment." (mp)