16 Amendments of Molly SCOTT CATO related to 2018/0006(CNS)
Amendment 15 #
Proposal for a directive
Recital 1
Recital 1
(1) Council Directive 2006/112/EC21 allows Member States to continue to apply their special schemes to small enterprises in accordance with common provisions and with a view to closer harmonisation. However, those provisions are outdated and do not fulfil their objective of reduceing the compliance burden of small enterprises as they were designed for a common system of value added tax (VAT) based on taxation in the Member State of origin. _________________ 21 OJ L 347, 11.12.2006, p. 1.
Amendment 16 #
Proposal for a directive
Recital 2
Recital 2
(2) In its VAT action plan22 , the Commission announced a comprehensive simplification package for small enterprises aimed at reducing their administrative burden and helping to create a fiscal environment to facilitate their growth and the development of cross- border trade. This would entail, as well as to increase VAT compliance. Small enterprises in the Union are particularly active in certain sectors which operate across borders, such as construction, communications, food service and retail trade, and can constitute an important source of employment. To achieve those objectives, a review of the special scheme for small enterprises as outlined in the Communication on the follow-up to the action plan on VAT23 is necessary. The review of the special scheme for small enterprises constitutes therefore an important element of the reform package set out in the VAT action plan. _________________ 22 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 7.4.2016). 23 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 4.10.2017).
Amendment 17 #
Proposal for a directive
Recital 3
Recital 3
(3) The review of this special scheme is closely linked to the Commission’s proposal setting out the principles for a definitive VAT system for cross-border business-to-business trade between Member States on the basis of the taxation of cross-border supplies of goods in the Member State of destination24 . The VAT system’s shift towards destination-based taxation has identified that a number of the current rules are not suited for a destination-based tax system. The main difficulties of enhanced cross-border trade for small enterprises arise because of the complex and diverse rules relating to VAT across the Union, as well as the fact that the national SME exemption only benefits small enterprises in the Member State in which those small enterprises are established. _________________ 24 Proposal for a Council Directive amending Directive 2006/112/EC on the common system of value added tax as regards certain harmonisation and simplification rules within the current value added tax system and introducing the definitive system for the taxation of trade between Member States (COM(2017) 569 final of 4.10.2017).
Amendment 18 #
Proposal for a directive
Recital 4
Recital 4
(4) In order to address the issue of the disproportionate compliance burden faced by small enterprises, simplification measures should be available not only to enterprises that are exempt under the current rules, but also to those considered small in economic terms. The availability of such measures is particularly relevant as a majority of small businesses, whether exempted or not, are de facto obliged to use the services of advisors or external consultants who help them comply with their VAT obligations, which adds a financial burden to small enterprises. For the purposes of the simplification of the VAT rules, enterprises would be considered ‘small’ if their turnover qualifies them as micro enterprises under the general definition provided for in Commission Recommendation 2003/361/EC25 . _________________ 25 Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium- sized enterprises (OJ L 124, 20.5.2003, p. 36).
Amendment 22 #
Proposal for a directive
Recital 8
Recital 8
(8) Member States should be left to set their national threshold for the exemption at the level that suits their economic and political conditions best, subject to the upper threshold provided for under this Directive. In this regard, it should be clarified that where Member States apply different thresholds, this would need to be based on objective criteria. In order to facilitate cross-border business, the list of national thresholds for exemption should be easily accessible to all SMEs willing to operate in several Member States.
Amendment 26 #
Proposal for a directive
Recital 13
Recital 13
(13) Furthermore, in order to ensure compliance with conditions for exemption granted by a Member State to enterprises not established there, it is necessary to require prior notification of their intention to use the exemption. Such notification should be made by the small enterprise to the Member State where it is established. That Member Statethrough an online portal to be set up by the Commission. The Member State of establishment should thereafter, based on the information declared on the turnover of that enterprise, provide that information to thinform the other Member States concerned. Small enterprises can at any time notify their Member States concerned of registration of their willingness to revert back to the general VAT system.
Amendment 29 #
Proposal for a directive
Recital 15
Recital 15
(15) To reduce the compliance burden of small enterprises that are not exempted, Member States should be required, as a minimum, to simplify VAT registration and record keeping and to prolong tax periods so as to provide for less frequent filing of VAT returns.
Amendment 32 #
Proposal for a directive
Article 1 – paragraph 1 – point 4 a (new)
Article 1 – paragraph 1 – point 4 a (new)
Directive 2006/112/EC
Article 251 a (new)
Article 251 a (new)
(4 a) The following Article is inserted: ‘Article 251a Member States may allow exempt small enterprises to file only simplified VAT returns including the following information: chargeable VAT, deductible VAT, net VAT amount (payable or receivable), total value of input transactions and total value of output transactions;’
Amendment 38 #
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2006/112/EC
Article 284 – paragraph 4 – subparagraph 1
Article 284 – paragraph 4 – subparagraph 1
Amendment 42 #
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2006/112/EC
Article 288a
Article 288a
Where during a subsequent calendar year the Member State annual turnover of a small enterprise exceeds the exemption threshold referred to in Article 284(1), the small enterprise shall be able to continue to benefit from the exemption for that year, provided that its Member State annual turnover during that year does not exceed the threshold set out in Article 284(1) by more than 5033%.;
Amendment 43 #
Proposal for a directive
Article 1 – paragraph 1 – point 17
Article 1 – paragraph 1 – point 17
(17) Articles 291 toand 2942 are deleted;
Amendment 44 #
Proposal for a directive
Article 1 – paragraph 1 – point 17 a (new)
Article 1 – paragraph 1 – point 17 a (new)
Directive 2006/112/EC
Article 293
Article 293
(17 a) Article 293 is replaced by the following: “Every four years starting from the adoption of this Directive, the Commission shall present to the European Parliament and the Council, on the basis of information obtained from the Member States, a report on the application of this Chapter, together, where appropriate and taking into account the need to ensure the long-term convergence of national regulations, with proposals on the following subjects:(1 (i) improvements to the special scheme for small enterprises;(2 (ii) the adaptation of national systems as regards exemptions and graduated tax relief;(3) the adaptation of the ceilings provided for in Section 2. the possibility to harmonise exemption thresholds across the Union; (iii) the adaptation of the ceilings provided for in Section 2.” Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02006L0112- 20160601&qid=1528271574699&from=EN)
Amendment 45 #
Proposal for a directive
Article 1 – paragraph 1 – point 17 b (new)
Article 1 – paragraph 1 – point 17 b (new)
(17b) Article 294 is deleted;
Amendment 49 #
Proposal for a directive
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Directive 2006/112/EC
Article 294e – paragraph 1
Article 294e – paragraph 1
Member States may release exempt small enterprises from the obligation to submit a VAT return laid down in Article 250 or may require exempt small enterprises to submit a simplified VAT return as laid down in Article 251a.
Amendment 57 #
Proposal for a directive
Article 2 – paragraph 1 – subparagraph 1
Article 2 – paragraph 1 – subparagraph 1
Member States shall adopt and publish, by 30 June 2022 at the latest1 December 2020, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall communicate to the Commission the text of those provisions without delay.
Amendment 61 #
Proposal for a directive
Article 2 – paragraph 1 – subparagraph 2
Article 2 – paragraph 1 – subparagraph 2
They shall apply those provisions from 1 Julanuary 20221.