Brussels, 22/12/2010 (Agence Europe) - On 20 December, the Commission published a communication illustrating the tax problems experienced by citizens when they are based abroad or work and invest in another country. This communication seeks to strengthen the internal market and facilitate cross-border activities for EU citizens. The communication also announces several measures to help resolve these problems and attempts to establish new measures that could be taken at both member state and Union levels, to simplify and harmonise tax practices as much as possible.
Many complaints are sent to the Commission about the complexity and incompatibility of national tax rules within the EU. Complaints also highlight the difficulties experienced by citizens from different member states to obtain clear information about these different systems. In the context of cross-border activities, cross-border workers face difficulties in getting tax allowances, relief and deductions from foreign tax authorities, and are frequently subject to double taxation, unlike their resident counterparts, etc. These problems can hinder citizens becoming involved in cross-border activities or e-Commerce and involve a range of different areas: income tax paid by cross-border workers or investors in pensions paid abroad, real estate and inheritance in other member states, vehicle registration taxes and the disparity of rules and declarations in the field of VAT.
In its communication, the Commission announces a series of measures in all of these different domains. These include: a communication on double taxation in 2011, examining the extent and gravity of this problem across the EU, followed by legislative proposals in 2012, proposing legislative solutions in this field; proposals in mid-2011 to address cross-border inheritance tax problems; measures to resolve the double taxation that can arise when a car that is first registered in one member state is then moved to and re-registered in another member state; extension of a “one-stop-shop” system for e-Commerce, in order to make reporting obligations for businesses much simpler and easier for them to offer goods and services online to foreign consumers. Obstacles to e-Commerce will also be addressed within the review of the EU's VAT system for which a consultation is now open (launched on 1 December last, EUROPE 10268) and proposals in 2012 to solve problems related to the taxation of cross-border dividend payments.
In addition, the Commission intends to promote measures to simplify tax measures to the benefit of citizens and the internal market. Ideas include standardised tax claim and declaration forms throughout the EU, single info-points where workers and investors could get clear and reliable tax information, and special tax measures at national level to cater for the needs of mobile and border workers.
The Commission also indicates that it will be examining progress accomplished in the area of cross-border tax problem solutions in its 2013 report on Union Citizenship (for the previous report, EUROPE 10245). (F.G./transl.fl)