31 Amendments of Johan VAN OVERTVELDT related to 2020/2263(INI)
Amendment 1 #
Motion for a resolution
Citation 2
Citation 2
— having regard to Articles 113 and 115 of the Treaty on the Functioning of the European Union (TFEU),
Amendment 5 #
Motion for a resolution
Recital B a (new)
Recital B a (new)
B a. whereas tax collection is primarily responsibility of each Member State;
Amendment 9 #
Motion for a resolution
Recital E a (new)
Recital E a (new)
E a. whereas according to the 2020 Final Report in the context of the ‘Study and Reports on the VAT Gap in the EU- 28 Member States' prepared for the Commission, the VAT gap in Member States varied from less than 1% in Sweden and Croatia to more than 33% in Romania;
Amendment 12 #
Motion for a resolution
Recital E b (new)
Recital E b (new)
E b. whereas the Parliament fully respects the principle of national tax sovereignty;
Amendment 14 #
Motion for a resolution
Recital E c (new)
Recital E c (new)
E c. whereas taxation is primarily the competence of the Member States and is subject to the unanimity requirement within the Council as stated in article 113 of the Treaty on the Functioning of the European Union;
Amendment 24 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1 a. Welcomes that the overall trend is positive as the VAT gap declined from 20 % in 2009 to 10 % in 2019 in the EU Member States which suggests that the VAT fraud in the EU is in decline and consequently VAT revenues to GDP are on the rise;
Amendment 26 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Notes that simplifying VAT with the introduction of a single rate and revenue neutrality could reduce the standard rate in the EU by an average of 7% percentage points, thus bringing the standard rate down from 13% to 2% percentage points; encourages Member States to explore the benefits which such a single reduced standard rate would have for fair competition on their market;
Amendment 35 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Takes the view that applying a multitude of reduced rates aggravates the complexity and opacity of the tax system, facilitates fraud and increases compliance costs; stresses that tax competition is the main mechanism helping Member States to identify and close the loopholes and shortcomings responsible for tax evasion;
Amendment 44 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Observes that the VAT gap fluctuates in line with the business cycle, and that low tax compliance is correlated with high standard VAT rates and multiple VAT rates as well as lower legal and judicial efficiency; encourages the Commission and Member States to share the best practices in this regard;
Amendment 47 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Takes the view that the current diversity of reduced rates imposes particularly highadditional compliance costs on businesses; and that total enterprise tax compliance costs are estimated to be an average of 2.5% of company turnover and vary considerably from Member State to Member State22 ; _________________ 22 Less than 1% in LU; almost 4% in PL., while VAT, Corporate Income Tax, and wage related taxes and contributions are rated the most burdensome, followed by property and real estate taxes22b; _________________ 22 Less than 1% in LU; almost 4% in PL. 22b Study on tax compliance costs for SMEs – Final Report, DG GROW, European Commission, 2018, p. xv
Amendment 50 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Observes that SMEs must pay proportionately higher total enterprise tax compliance costs, as these costs are fixed and independent of company size, and that high compliance costs constitute a barrier to entry into the EU internal market; taknotes the view,at empirical evidence on ther efore, that differentiated VAT regimes within the EU may act as a dfect of VAT systems on international trade is incentive to exports;onclusive22c; _________________ 22c DIW Econ study, page 21
Amendment 56 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Notes digitalisation’s potential to reduce compliance costs; maintains that digital innovations23 are likely to reduce compliance costs and, help increase the transparency of commercial transactions and reduce red tape; stresses the need to ensure data security and individual and corporate privacy; _________________ 23Such as AI, big data and blockchain technology.
Amendment 57 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7 a. In order to facilitate trade and increase legal certainty in the single market, the Commission, in cooperation with Member States, should establish a Union VAT Web information portal for businesses. That portal should provide quick, up-to-date and accurate access to relevant information about the implementation of the VAT system in the different Member States and in particular on the correct VAT-rates for different goods and services in the different Member States, as well as the conditions for zero-rate; Such a portal may also help to address the current VAT gap;
Amendment 64 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Observes that the wide variety of rates can causes price distortion in the internal market, creating incentives for cross-border purchases and giving rise to increased tax competition between Member States; recallnotes that companies need clear and unambiguous VAT rules to26 out of 27 Member States use the reduced rates as part of their tax and social policies; recalls that one common web information portal about the implementation of VAT system in different Member States would encourage cross-border business and reduce their administrative burdens of companies;
Amendment 66 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Welcomes the positive trend of reducing the compliance costs due to continuing digitization of businesses and public administration; notes that in OECD countries the time necessary for tax compliance fell between 2006 and 2020 from 230 hours to 162 hours, mainly due to the adoption of electronic filing and payment systems23a; _________________ 23a PWC, Paying Taxes 2020, page 27
Amendment 67 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Stresses that a well-designedn effective VAT system is neutral and should not affect trade, but that in practice this principle is difficult to verify at global level given the application of VAT exemptions, the ineffectiveness of refund systems, the wide variety of rates – incurring higher compliance costs – and the fact that VAT has superseded income taxes with a view to encouraging tradewith low average tax rates is less vulnerable to tax evasion and tax optimisation;
Amendment 71 #
Motion for a resolution
Paragraph 9 a (new)
Paragraph 9 a (new)
9 a. Notes in comparison to EU27 that among 50 federal states of the USA there are over 11,000 standard sales tax jurisdictions with a distinct aggregate sales tax rate based on a unique combination of factors, including sales taxes levied by taxing authorities at the state, county, city, and district levels23b; _________________ 23bhttps://taxfoundation.org/state-sales- tax-jurisdictions-in-the-us-2020/
Amendment 74 #
Motion for a resolution
Paragraph 10
Paragraph 10
Amendment 88 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Recalls that for it to have a leverage effect, green taxation must be inclusive, strive for social equity and not undermine businesses’ international competitiveness; observes that the effectiveness of reduced rates in promoting this type of goods and services or, in a broader sense, merit goods (e.g. culture, health, biodiversity) is chiefly a function of the extent to which they are used to promote such goods;
Amendment 90 #
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
11 a. Stresses in this regard that reduced rates shall be applied always in fiscally responsible manner, without sacrificing the sustainability of public finances;
Amendment 93 #
Motion for a resolution
Paragraph 12
Paragraph 12
Amendment 98 #
Motion for a resolution
Paragraph 13
Paragraph 13
Amendment 105 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Stresses that a uniform VAT system, combined with a direct tax incentive tool such as the income-based tax credit scheme for low-income households, together with a raft of social reforms, would be a winning strategy; recalls that New Zealand has a flat-rate VAT system and applies tax credit for low-income households; points out that flat-rate subsidies and information campaigns are an option for the promotion of merit goodsRecalls that New Zealand has an uniform 15% flat-rate VAT system;
Amendment 110 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Recalls that VAT revenue is one of the chief sources of public revenue, accounting for some 21% of total tax revenue in the EU on average; that the VAT gap stands at 10% on average; and that VAT also constitutes an own resource for the EU budget; stresses that any reduction in the VAT base may leads to less revenue for public finances, however, theoretical and empirical evidence shows lower tax rate may also lead to higher revenue; calls on national tax authorities to take initiatives to reduce the VAT gap in order to help lift Member States out of the current socio- economic crisis;
Amendment 114 #
Motion for a resolution
Paragraph 15 a (new)
Paragraph 15 a (new)
15 a. Welcomes in this regard that major progress has been achieved on cooperation between the tax authorities of the Member States over the last decade; supports further discussions among Member States in order to strengthen the administrative cooperation;
Amendment 116 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. EndorsNotes the findings of the DIW Econ study which stresses that on average the standard rate was applied to 71% of the total tax base in the Member States in 2019; points out that compliance costs of diversified VAT systems impose costs on businesses, particularly SMEs via increased compliance costs, create distortions in the internal market and trade, and incur costs on government through lost revenue; adds that reduced rates are an insufficient means of achieving revenue-dcan be significantly reduced by continuing digitization of businesses and public administribuation or environmental objectives;
Amendment 121 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Notes the difficulties in reducing the VAT gap between Member States owing to the need to maintain a number of VAT exemptions for certain goods and services and the willingness of Member States to maintain reduced rates of at least 5%; aAcknowledges that Member States need to conserve the flexibility to set their own VAT rates given the importance of this tax as a budgetary instrument;
Amendment 129 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Calls for a simplified VAT system with limits on exemptions and non- standard rates to be introduced with a view to promoting competitiveness; takes the view that limiting the exemptions should go hand-in-hand with lowering the standard and minimum 15% VAT rate;
Amendment 139 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Stresses that the VAT gap is chiefly attributable to the ineffectiveness of enforcement and control measures, particularly those against tax evasion and avoidance and aggressive tax planning; stresses that fighting tax fraud and tax evasion should not breach the principle of tax sovereignty and tax competition;
Amendment 144 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Recalls that the effectiveness of reduced rates as a policy tool must always be assessed in the specific context of other existing policy tools; adds that reduced rates are often complementary to existing social and environmental policy tools; and that direct tax incentives are instruments that better target low-income households and are generally less costly;
Amendment 153 #
Motion for a resolution
Paragraph 21 a (new)
Paragraph 21 a (new)