20 Amendments of Molly SCOTT CATO related to 2018/0005(CNS)
Amendment 14 #
Proposal for a directive
Recital 1
Recital 1
(1) Rules on rates of value added tax (VAT) as currently set out in Council Directive 2006/112/EC27 aim to preserve the functioning of the internal market and avoid distortions of competition. The rules were designed over two decades ago based on the origin principle and are no longer fit for purpose. In its VAT Action Plan28 and in the follow-up to this29, the Commission announced its intention to adjust those rules for a definitive VAT system for cross-border business-to- business (B2B) trade in goods between Member States that would be based on the taxation in the Member State of destination. _________________ 27 OJ L 347, 11.12.2006, p. 1. 28 Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee on an action plan on VAT – Towards a single EU VAT area – Time to decide (COM(2016) 148 final of 7 April 2016) 29 Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee on the follow-up to the Action Plan on VAT – Towards a single EU VAT area – Time to act (COM(2017) 566 final of 4 October 2017)
Amendment 16 #
Proposal for a directive
Recital 2
Recital 2
(2) Under a definitive system where the supply of goods and services would be taxed in the Member State of destination, suppliers derive no significantless benefit from being established in a lower-rate Member State. Greater diversity in VAT rates wshould not, under such a system, disrupt the functioning of the single market nor create distortions of competition. In those circumstances, it would be appropriate to grant morea certain flexibility to Member States in the setting of rates.
Amendment 18 #
Proposal for a directive
Recital 3
Recital 3
(3) The removal of restrictions in parallell with the entry into force of the definitive arrangements for the taxation of trade between Member States should allow Member States to continue to apply reduced VAT rates that are currently granted asreplacing derogations granted under Chapter 4 of Title VIII of Directive 2006/112/EC and Annex X to Directive 2006/112/EC and which would otherwise expire with the entry into force of those arrangements.
Amendment 20 #
Proposal for a directive
Recital 4
Recital 4
(4) In a definitive VAT system all Member States should be treated equally and should therefore have the same restrictions in applying reduced VAT rates, which should remain an exception to the standard rate. Such equal treatment without restricting Member States current flexibility in setting VAT can be achieved by enabling all of them to apply a super- reduced rate for which the minimum requirement does not apply, as well as an exemption with the right to deduct input VAT, in addition to a maximum of two reduced rates of a minimum ofrespectively 10 % and 5 %.
Amendment 26 #
Proposal for a directive
Recital 5
Recital 5
(5) Distortions of competition could arise where the mechanism used for taxation would not be based on the destination principle. That is notably so with travel facilities supplied as a single service under the margin scheme for travel agents and goods supplied under the special arrangements for second-hand goods, works of art, collectors’ items and antiques but also in certain cases involving goods or services, such as financial services, that are exempted without right of deduction but for which a right of taxation may be granted. In order to mitigate any such distortions, a list of supplies of goods and services subject to the standard VAT rate ('negative list') should be established based on the statistical classification of products by activity. The list should be reviewed every five yeaby means of an implementing act as often as necessary, based on evidence provided by the Commission. Any change to that list should be widely communicated across the Union to inform taxpayers.
Amendment 27 #
Proposal for a directive
Recital 5 a (new)
Recital 5 a (new)
(5a) In addition, in order to meet international commitments related to social and environmental sectors, such as the Paris Agreement on climate, the Commission should establish – by means of a delegated act – a list of supplies of goods and services that shall be subject to reduced rates or to an exemption with the right to deduct input VAT (“positive list”). That list should be reviewed at least once a year to include newly commercialised goods, such as electric bikes for example, which meet the Union’s commitment to social and environmental standards.
Amendment 29 #
Proposal for a directive
Recital 6
Recital 6
(6) To avoid unnecessary complexity and subsequent rise in business costs, in particular for intra-Community trade, goods and services that can be used only as intermediate input to an economic activity should not be eligible for reduced rates in a definitive VAT system. Such rates should be applied only for the ultimate benefit of final consumers and the setting of such rates should ensure equal treatment of similar goods or services supplied by different taxable persons. They should therefore be applied to pursue, in a consistent manner, an objective of general interest.
Amendment 32 #
Proposal for a directive
Recital 6 a (new)
Recital 6 a (new)
Amendment 34 #
Proposal for a directive
Recital 7
Recital 7
(7) For the public finances of Member States to remain sound and in order to prevent excessive macroeconomic imbalances, an appropriate level of revenue should be ensured. Given that VAT is an important source of revenue, it is therefore vital, as a safeguard for national budgets and the Union budget, to set a minimum for the weighted average rate to be respected at any time by the Member States.
Amendment 38 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2006/112/EC
Article 98 – paragraph 1 – subparagraph 1
Article 98 – paragraph 1 – subparagraph 1
Member States may apply a maximum of two reduced rates of 10 % and 5 %respectively.
Amendment 40 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2006/112/EC
Article 98 – paragraph 1 – subparagraph 2
Article 98 – paragraph 1 – subparagraph 2
Amendment 42 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2006/112/EC
Article 98 – paragraph 2
Article 98 – paragraph 2
2. By way of derogation from paragraph 1, Member States may in addition to the two reduced rates apply a super-reduced rate lower than the minimum of 5% and an exemption with deductibility of the VAT paid at the preceding stage.
Amendment 44 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2006/112/EC
Article 98 – paragraph 3 – subparagraph 1
Article 98 – paragraph 3 – subparagraph 1
Reduced rates, super-reduced rates and exemptions applied pursuant to paragraphs 1 and 2 shall only benefit the final consumer and shall be applied to pursue, in a consistent manner, an objective of general interest. Priority shall be given to goods or services which have positive social and / or environmental effects, in order to meet the Union’s international commitments in these sectors.
Amendment 49 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2006/112/EC
Article 98 – paragraph 3 – subparagraph 1 a (new)
Article 98 – paragraph 3 – subparagraph 1 a (new)
Reduced rates, super-reduced rates and exemptions shall apply to supplies of goods or services in the categories set out in the revised Annex III.
Amendment 52 #
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2006/112/EC
Article 98 – paragraph 3 – subparagraph 2
Article 98 – paragraph 3 – subparagraph 2
The reduced rates, super-reduced rates and exemptions referred to in paragraphs 1 and 2 shall not be applied to goods or services in the categories set out in Annex IIIa.;
Amendment 54 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2006/112/EC
Article 99a – paragraph 1
Article 99a – paragraph 1
While setting the rates referred to in Articles 97 and 98, Member States shall ensure that the weighted average rate, calculated in accordance with Article 4 of Council Regulation (EEC, Euratom) No 1553/89 (*), exceeds 125 % at any given time.
Amendment 57 #
Proposal for a directive
Article 1 – paragraph 1 – point 5
Article 1 – paragraph 1 – point 5
Directive 2006/112/EC
Article 100 – paragraph –1 (new)
Article 100 – paragraph –1 (new)
-1. The Commission is empowered to amend the scope of Annex IIIa by means of an implementing act, when necessary and provided there is evidence related to distortion of competition justifying the update of the list of supplies of goods and services.
Amendment 60 #
Proposal for a directive
Article 1 – paragraph 1 – point 5
Article 1 – paragraph 1 – point 5
Directive 2006/112/EC
Article 100 – paragraph 1
Article 100 – paragraph 1
2. By 31 December 20261 and every fivthree years thereafter, the Commission shall submit to the European Parliament and the Council a report on the scope of Annex IIIa, accompanied by any proposals to amend that Annex, where necessary.';
Amendment 61 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 Directive 2006/112/EC
Article 1 – paragraph 1 – point 5 Directive 2006/112/EC
The following Article is inserted: 'Article 100a The Commission, in cooperation with Member States, shall establish a Union VAT Web Information Portal for enterprises. That Portal should provide accurate information about the implementation of the VAT system in the different Member States, including which goods or services benefit from reduced rates, super-reduced rates or exemptions.';
Amendment 65 #
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2006/112/EC
Annex III
Annex III
(12) Annex III iswill be amended by means of a delegated; act by the date corresponding to the date of entry into force of the Directive, to have a list of supplies of goods and services to which reduced rates, super-reduced rates or exemptions shall be applied, in accordance with the Union’s international commitments on social and environmental matters. That list shall be reviewed at least once a year;