European Parliament rapporteurs from the Czech Republic, Ondřej Kovařík (Renew Europe) and Luděk Niedermayer (EPP) stated on Tuesday, 9 June, that a three-month postponement for the entry into application of the legislative package on modernising VAT for cross-border e-commerce (see EUROPE 11919/3) due to the Covid-19 pandemic was sufficient.
During a discussion in the European Parliament’s Committee on Economic and Monetary Affairs (ECON), Ondřej Kovařík expressed his opinion that a six-month postponement, as proposed by the European Commission (see EUROPE 12483/7), would be “detrimental to the public finances”.
According to the Commission’s estimates, Member States will suffer budgetary losses ranging from €5 billion to €7 billion per year if the VAT e-commerce package is not successfully implemented. The rapporteurs pointed out that a six-month delay would thus lead to losses of between €2.5 billion and €3.5 billion.
As a compromise, they are therefore suggesting a postponement of only three months. They explained that this delay coincides with the lockdown period in place in most countries.
While the S&D group would have preferred a six-month delay, it indicated that it could support this compromise. For its part, the ECR group explained that it remains in favour of the delay proposed by the Commission, as it is in line with what Member States themselves have requested.
Even if MEPs are only consulted on the matter, Mr Kovařík declared, “It is also important that the European Parliament send a signal to both the Council and the Commission that we do not agree with a long extension and that they should be ready to implement the directives in order to reduce VAT fraud and losses as soon as feasible”.
On the same day, MEPs approved the use of the simplified procedure so as to deliver the European Parliament’s opinion to the Council of the EU on time. The reports for opinion will be submitted for adoption, without debate, at the July plenary session. (Original version in French by Marion Fontana)