MEPs of the European Parliament’s Committee on Economic and Monetary Affairs (ECON) adopted, on Tuesday 24 October, their position on VAT in the digital age (‘ViDA’) (see EUROPE 13225/20).
“Adapting VAT to the digital age is necessary, but we also need to give businesses and tax authorities greater flexibility to comply with these new requirements”, commented rapporteur Olivier Chastel (Renew Europe, Belgian) on X (formerly Twitter). “Only this way we can improve the functioning of the internal market and better combat VAT fraud, which in recent years has meant a loss of €93 billion for EU countries”, he added.
MEPs voted unanimously (53 in favour) to approve the first report on the VAT administrative cooperation agreements needed in the digital age. In their position, the MEPs wanted to promote and facilitate multilateral cooperation in the fight against VAT fraud. They called for the swift exchange, processing and analysis of targeted information on cross-border fraud between Member States and Eurofisc (a group of experts that coordinates any follow-up action), as well as with the European Public Prosecutor’s Office (EPPO), Europol and the European Anti-Fraud Office (OLAF).
The EPPO would also be given a personal user identification for the central electronic VAT information system (‘central VIES’) when this access is linked to an investigation into suspected VAT fraud or the detection of VAT fraud. The EPPO and Europol could also investigate these issues.
Finally, MEPs strengthened the protection of European taxpayers’ data by opposing direct access to this data by the European Commission. On the other hand, it should provide technical assistance for secure connection to the ‘Central VIES’ system by authorised officials.
With 47 votes in favour and 5 abstentions, they approved the report on the amendment of the directive concerning VAT rules in the digital age. In their position, MEPs want to allow Member States to issue electronic invoices under a different format, in accordance with Article 217, as long as they authorise the use of the European standard. For domestic transactions, Member States could require taxable persons established on their territory to issue electronic invoices for supplies of goods and services made on their territory.
Finally, a short-term rental of accommodation would be considered to have a function similar to the hotel sector if it is uninterrupted for a maximum of 31 nights with or without the provision of other ancillary services or if at least three significant ancillary services are included with it.
To read the compromise amendments to the regulation: https://aeur.eu/f/98f
To read the compromise amendments on the revision of the directive: https://aeur.eu/f/98g (Original version in French by Anne Damiani)