Taxation Framework for Social Economy Entities

The EESC:

• stresses how imperative it is that the Member States’ tax systems do not hamper the development of the social economy, and welcomes the European Commission’s goal to provide support to the Member States by publishing guidance on relevant taxation frameworks applicable to social economy entities;
• notes that knowledge on the approaches adopted in the different Member States could be a significant starting point to deepen and improve the overall tax framework of social economy entities in the internal market;
• hopes that efforts to harmonise the approaches to taxing social enterprises can be pursued in the future, with a view to consolidating the internal market;
• calls for in-depth consideration of possible ways of harmonising social economy taxation in the EU in the future;
• encourages the European Commission and the Member States to also consider extra-favourable VAT rates for public benefit activities carried out by social economy entities and for social services, particularly for the sector of health and social care for older people, as well as the personal services, long-term care and education sectors.