Update October 5, 2022
Highlights
- The Council Directive on VAT rates has been approved on April 5, 2022
- The European Commission publishd the consultants’ report on ”VAT in the Digital Age”: Options for Single VAT Registration; Digital Reporting Requirements; and VAT Treatment of Platform Economy
- On November 16, 2022, the European Commission will launch its proposal on ”VAT in the Digital Age” and DAC 8
- The VAT Forum ceased to exist and got its last meeting end of September. It published its report on the ”Quick Fixes”
- The new members of the VAT Expert Group have been appointed, applicable as of October 1, 2022
Annual report
Brexit
CBAM (Carbon Border Adjustment Mechanism)
- Members of the European Parliament call for expanded carbon leakage instrument
- CBAM: Commission launches call for applications for informal expert group
- Council of the EU agrees on the Carbon Border Adjustment Mechanism (CBAM)
- EU: Auditors Review Energy Taxation and Carbon Pricing
- European Parliament approves five elements of “Fit for 55” climate package, including a more ambitious EU Carbon Border Adjustment Mechanism
- EU countries agree on Carbon Border Adjustment Mechanism
CESOP
- Central Electronic System of Payment information (CESOP) – Transmission and exchange of payment data to fight VAT fraud
- CESOP Guidelines from the European Commission
- EU Implementing Regulation for Payment Information System for Payment Service Providers
COVID-19
Customs
- Commission seeks views on upcoming EU customs reform
- Interim Evaluation of the implementation of the Union Customs Code
- Taking the EU Customs Union to the next level: innovative ideas for a modern and efficient Customs Union presented by Wise Persons Group
ECJ Cases
E-Commerce
- Public consultation on EU rules governing e-commerce transactions from third countries
- VAT in e-commerce: the Commission takes a step further in the fight against fraud
- Updated revenue numbers hint to a successful application of new EU VAT laws for e-commerce
- EU Group on the Future of VAT backs IOSS double taxation fix
Environmental Tax
- Circular economy: new EU rules to allow use of recycled plastics in food packaging
- Commission Implementing Decision – An EU Green VAT to stimulate sustainable and eco-friendly products and services
- Commission unveils new approach to trade agreements to promote green and just growth
- European Council takes action to ensure green transition is fair and inclusive
- Marking one year of Fit for 55
- EU Two new European Citizens’ Initiatives – The Green VAT – An EU Green VAT to stimulate sustainable and eco-friendly products and services
EU approvals
- European Commission proposed to authorize Slovenia to continue exempting from VAT those taxable persons whose annual turnover is no higher than EUR 50,000
- European Commission Proposes Extension of VAT Reverse Charge Mechanism to Combat EU Intra-Community Fraud
- European Commission takes further action against GREECE for failure to comply with the EU VAT rules on postal services
EU Management Plan
- European Commission publishes 2022 tax management plan
- European Commission Publishes Taxation and Customs Union Department Management Plan for 2022
Excise
- European Commission publishes regulations on the Excise Framework Directive
- Public consultation – Excise duty on alcohol and alcoholic beverages – evaluation of excise duty rates and tax structures
Financial Services Exemption
Fraud
- EU and Norway to expand VAT fraud prevention
- International fight against VAT fraud: Strengthen the EU’s VAT cooperation with Norway
- European Commission Launches Public Consultation on an Initiative to Fight Tax Evasion and Aggressive Tax Planning by Addressing the Role of Enablers
Group of the future of VAT
- E-invoicing in the Group on the Future of VAT
- Group of the Future of VAT – 37th meeting on Feb 9, 2022 – Discussions on IOSS, Platform economy, Real Time Reporting, Blockchain
- Group of the Future of VAT – 38th meeting on May 6, 2022 – Minutes & Working documents available
- Group on the Future of VAT – Minutes of the 37th meeting (Feb 9, 2022)
Majority voting
- German Chancellor Calls for Majority Voting on Tax Policy and Other Issues in the EU
- EU General Affairs Council Discusses Switch from Unanimity to Qualified Majority Voting
Optional reverse charge & quick reaction mechanism
- EC Consultation: Extension of ‘optional reverse charge’ and ‘quick reaction’ mechanisms
- European Parliament: Report on extension of the application period of the optional reverse charge mechanism and the Quick Reaction Mechanism
- Proposal Council Directive to extend Optional Reverse Charge & Quick Reaction mechanism
Other
- Removal of taxation-based obstacles and distortions in the Single Market in order to encourage cross border investment
- Benefits of Principled Tax Policy: EU VAT Reform Results
- Council Implementing Regulation: VAT and/or excise duty exemption certificate
- Czech Presidency of the Council of the European Union, July to December 2022
- DG TAXUD publishes work plan for 2022: VAT in the digital age proposal and an initiative to address the VAT gap is scheduled for Q3
- ECOFIN Adopts Conclusions on the Work of the Code of Conduct Group (Business Taxation)
- Ecofin report to the European Council on tax issues: E-Commerce, Definitive System, VAT rates reform, Extension reverse-charge, …
- EU – Tax priorities of the Czech EU Presidency
- EU and UK signed agreements to strengthen Customs and Tax Cooperation
- EU watch: where next for the EU tax agenda?
- European Parliament Petition by Ine Lejeune (Belgian) on VAT exemption on the transportation of exported goods
- European Parliament resolution of 10 March 2022 with recommendations to the Commission on fair and simple taxation supporting the recovery…
- State Of The European Union 2022: the Commission publishes an overview of past year’s actions
- Tax Files Under New Council of EU Presidency: Czechia
- The European Parliament backs important EU VAT reforms
- EU import VAT on returned goods – harmonising options
- EU Policy – Major recent developments (DRR, VAT Rates, Own resources, …)
- EU Review of VAT reforms under French Presidency
- European Commission to Consider VAT Waiver to Support Joint Procurement and Joint Ownership of Defence Capabilities
- Programme of the Czech Presidency of the Council of the European Union
- Reports issued by the EU VAT Reform
Own resources
Regulating tax advice
- The liability of tax advisers in the EU has reached its next stage
- European Commission launches public consultation on regulating tax advice
- Commission launches initiative to tackle role of enablers in aggressive tax planning
- EU Commission launches public consultation on measures restricting the role of tax ‘enablers’ (advisors)
- European Commission Considering Options to Address the Role of Enablers in Facilitating Tax Evasion and/or Aggressive Tax Planning in the EU
SME’s
Ukraine/Russia crises
VAT Committee
- EU VAT Committee on VAT rules applicable to transactions related to the recharging of electric vehicles
- EU VAT Committee: cross-border VAT groups
- EU VAT Committee: WP 1017 Spain – Application of a reduced VAT rate to certain supplies of electricity
- VAT Committee – 120th meeting on March 28, 2022 – Agenda and Working Papers
- VAT Committee – WP 1032 Addendum – Romanian consultation on Reduced rate of VAT for supplies of district heating
- VAT Committee Guidelines – Updated after 119th meeting
- VAT Committee WP 1035 – Belgian consultation on reduced VAT rates for electricity
- VAT Committee: Unanimous approval of the solution to regularise double taxation in the IOSS VAT return
VAT Expert Group
- The European Commission has published the composition of the new VAT Expert Group
- EU VAT Expert Group – Activities since Jan 1, 2021 – No meetings have been held yet in 2022
- VAT Expert Group – Minutes of the 31st meeting (June 10, 2022)
- VAT Expert Group meeting #31 on June 10, 2022
- VAT Expert Group urges the European Commission to provide the legal certainty on the concept of ”Fixed Establishment”
- Presentation VAT Expert Group – Fuel cards subgroup – Case C-235/18 Vega International
VAT Forum
VAT Gap
- European Parliament resolution of 16 February 2022: what is the missing part to reduce the EU VAT gap?
- Sharing best practices on tax administration and collections to reduce missing VAT
VAT in the Digital Age
- EU VAT in the Digital Age options – consultant’s report
- EU VAT in the Digital Age proposals 16 November 2022
- EU VAT Policy ”VAT in the Digital Age” – Part 2: E-invoicing and the need for EU standards and interoperability
- EU VAT Policy ”VAT in the Digital Age” – Part 3: VAT and the platform economy – focus on specific issues
- European Commission issued final report VAT in the Digital Age – Volume 1: Digital Reporting Requirements
- European Commission issued final report VAT in the Digital Age – Volume 2: The VAT treatment of the platform economy
- European Commission issued final report VAT in the Digital Age – Volume 3: Single place of VAT registration and import one stop shop
- European Commission issued final report VAT in the Digital Age: Executive Summary
- European Commission issued final report VAT in the Digital Age: Volume 4, Consultation activities
- European Commission proposal on VAT in the Digital Age and DAC8 will be published November 16, 2022
- European Parliament calls on the European Commission to set-up a harmonised common standard for e-invoicing across the Union without delay and by 2022
- Final Report – Compliance cost of EUR 204 billion to comply with tax obligations, most VAT audits in Lithuania, Latvia and Hungary
- The Future of VAT for financial services and insurance (FSI) – VAT revision is unlikely to arrive before 2023
- VAT in the digital age – Business Europe reply to the public consultation
- European Commission Extends Consultation on Initiative for VAT in the Digital Age till May 5, 2022
- The European Union will propose in 2022 a regulation for the VAT of the new digital economy
VAT Rates
- Council Directive 2022/542 on VAT rates also includes changes to the ”Place of Supply” with regard to services supplied via electronic means
- European Commission: agreement was reached to update the current rules governing VAT rates for goods and services
- VAT rates – greater flexibility for Member States
- EU Council approves fundamental overhaul of VAT rates
- EU Council Directive Published Amending Rules on Reduced VAT Rates
Vat Registration
VAT Revenue collection
See also
