On 1 July 2023, Spain will take over the rotating Presidency of the Council of the European Union against the backdrop of a volatile external environment. Over the next six months, strengthening the case for investing in Europe should be the top priority for the Spanish Presidency. Our recommendations to the Spanish Presidency aim to raise issues that are vital to shaping a strong and competitive EU and provide concrete input and direction to the Presidency’s work programme over the coming six months.
Indirect Tax Aspects
- Electronic data interchange (EDI) standards
EDI standards can provide certainty for relevant authorities and simplify the operation process for all operators over liability by aligning value added tax (VAT) with customs legislation and by establishing an Import One Stop Shop model that includes an endto-end green lane status.
Recommendations:
• Centralise procedures through a single European Customs Agency where economic operators can file their customs declarations in order to streamline free movement of goods.
• Implement the VAT e-commerce package in a harmonised and effective manner
- Single market
The Single Market is the basis of Europe’s economic success and a key driver of US investment in Europe. Policymakers need to continue to stand up for the achievements of the Single Market and prevent fragmentation.
Recommendations:
• Advance negotiations on an EU single VAT ID for cross-border inventory storage and onward sales as included in the Digital Age proposal. This would remove significant costs for businesses, particularly small and medium-sized enterprises (SMEs), when storing and selling across borders in the EU’s Single Market.
• Deliver greater action at the Member State level to protect the integrity of the Single Market.
• Foster the right environment to conduct business and ensure a solid infrastructure to encourage skills, talent, innovation and labour flexibility.
• Develop the Digital Single Market where online services, goods and data can move freely to allow citizens and companies to reap the full benefits of the digital transformation.
Source AmCham EU
