Digital taxation - Related Opinions
The Committee calls on the Member States to step up their efforts in combatting aggressive tax planning, along with tax avoidance that could lead to significant losses of revenue for Member States' budgets. The EESC believes that the harmonisation and simplification of tax rules should be a priority for the Member States and that the elimination of tax barriers should go hand in hand with these harmonisation efforts. The Committee proposes to extend the common consolidated corporate tax base (CCCTB) and recommends that Member States to look for solutions to implement the recommendations of the High Level Group on Own Resources. Finally, the EESC feels that the introduction of qualified majority voting in the field of direct taxation could support better the efforts to harmonise the rules on establishing the tax base for the main taxes.
The EESC welcomes the package on the modernisation of VAT on cross-border e-commerce, and endorses both its objectives and its focus on addressing the concerns of SMEs. The Committee welcomes the proposed extension of the MOSS to goods as it creates conditions for the possible removal of the Low Value Consignment Relief (LVCR) scheme. Furthermore, the amendments to the VAT rates applicable to e-publications rules would eliminate the distinction between physical and non-physical publications, and ensure neutrality in this market.
The EESC welcomes the "Action Plan on VAT", and calls for a definitive VAT system that is clear, consistent, robust and comprehensive, as well as proportionate and future-proof. The Committee welcomes the strong focus on closing the VAT gap and tackling the susceptibility of VAT to fraud. There should be results delivered without delay, including by improving cooperation between tax administrations. “Bona fide” enterprises should be protected and no new excessive measures should be imposed on them. The future system of reduced rates must combine flexibility and legal certainty, be transparent, and for the sake of simplicity the number of reduced rates and exemptions must be limited.
The proposal for a Common Consolidated Corporate Tax Base spurs the debate among policymakers and stakeholders. Opinions diverge whether such a project would remove obstacles to the completion of the Single Market and reduce compliance cost - or if it would rather impose further red tape, raise compliance cost and take away tax sovereignty from national legislators. The EESC generally supports the Commission proposal, but certain aspects remain controversial among it's members.