Weekly Tax News from ETAF – 23 July 2018

The European Tax Adviser Federation (ETAF) published its latest news on 23 July.

EESC’s opinion on the proposal for taxing the digital economy

On 12 July 2018, the European Economic and Social Committee (EESC) has adopted an opinion in its plenary session highlighting the need to reach a solution for the taxation of digital business models at OECD level. The EESC stressed that the approach of taxing businesses’ turnover instead of profits and to levy taxes where sales take place instead of where the value is created (i.e. the EC interim tax) could jeopardise the integrity of the EU single market and lead to double taxation. However, the EESC welcomed that the Commission has taken digital tax initiatives, launching an international debate about digital taxation with its proposal.

Read on

The Parliament has released a report on the interim digital services tax

On 16 July 2018, the European Parliamentary Research Service has published a briefing on the interim digital services tax. The document takes stock of the situation including the position of the national parliaments that have sent their reasoned opinions (Danish, Irish, Maltese and Dutch parliaments have stressed that the proposal is not compatible with the subsidiarity principle). The briefing also includes the view of various stakeholders and academics, such as the Tax Justice Network, Oxfam, the OECD, the Oxford University Centre for Business Taxation and the International Bureau of Fiscal Documentation (IBFD). Read on.

EC is considering to withdraw the proposal on four VAT quick fixes

On 11 July 2018, the European Commissioner for Taxation, Pierre Moscovici, sent a letter to the chair of the ECON committee of the European Parliament explaining that the Commission may withdraw the legislative proposal intending to introduce four quick fixes pending a definitive replacement for the current VAT system. The issue is connected with the inclusion of a fifth solution as called for by France, Italy, Austria, Ireland, Luxembourg and Latvia. According to Commissioner Moscovici, this exemption is unrelated to the proposal of the Commission, which it denatures. For this reason, the European Commission is threatening to withdraw the whole proposal.

European Commission: July infringements package

In its monthly infringements package, the European Commission has sent four reasoned opinions and eight letters of formal notice to various Member States. Among others, the Commission has asked Germany to align its administrative practice regarding cross-border VAT refund with EU law. Furthermore, two letters of formal notice were sent to Italy, requiring to put an end to the regional tax on petrol for motor vehicles and to bring the VAT rules on the supply of services relating to the importation of goods in line with EU law. Finally, Belgium received a letter of formal notice requiring to bring its rules on saving income in the form of interest payments to Belgian residents with accounts in Luxembourg and Austria into line with EU law. Read on.

For more information, please visit the official ETAF website. 

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