18 Amendments of Pedro MARQUES related to 2020/2263(INI)
Amendment 21 #
Motion for a resolution
Recital H a (new)
Recital H a (new)
H a. whereas the general objective of digitalisation of taxation is key to ensure transparency, accountability and automated reporting, essential for a definitive, simplified and future-proof VAT regime; whereas the COVID-19 pandemic has catalysed the development of digitalisation for all transactions; whereas SMEs are at the centre of such digitalisation process and should be supported in this respect in acquiring the latest technology and know-how;
Amendment 27 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Notes that simplifying VAT with the introduction of a single rrough estimates show thate and revenue -neutrality tax reform could reduce the standard VAT rate ion the EU by an average of 7%, thus bringing the standard rate down from 13% to 2%average by 7 percentage points in the EU-27, in addition to reducing compliance costs; highlights that, according to those estimates, the size of the reduction varies between EU member states from 2 to 13 percentage points;
Amendment 34 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Takes the view that applying a multitude of reduced rates has a legitimate purpose in society, notably to reduce the regressiveness of the VAT system and helping achieve certain national policy objectives, but it also aggravates the complexity and opacity of the tax system, facilitates fraud and increases compliance costs and may facilitate fraud;
Amendment 43 #
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 correlsometimes associated with high standard VAT rates and multiple VAT rates as well asbut also with lower legal and judicial efficiency, weaker legal institutions, higher perceived levels of corruption and the overall share of the shadow economy;
Amendment 53 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Notes digitalisation’s potential to reduce compliance costs in the long term; maintains that digital innovations23 are likely to reduce compliance costs and help increase the transparency of commercial transactions; stresses the need to ensure data security and individual and corprivacy; insists that SMEs and other vulnerable economic actors need to be supporate privacyd through EU programmes and EU-induced trainings in the digital transition in order to benefit from it and contribute to it; stresses that such general approach towards accelerating the digitalisation of SMEs’ know-how and operations on the ground would ultimately benefit VAT collection; _________________ 23Such as AI, big data and blockchain technology.
Amendment 62 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Observes that the wide variety of rates may causes price distortion in the internal market, creating incentives for cross-border purchases and giving rise to increased tax competition between Member States; recalls that companies need simplified and centralised access to information on rates, as well as clear and unambiguous VAT rules to encourage cross-border business and reduce their administrative burdens; welcomes in this respect the simplified and digitalised method for registering under the VAT exemption regime for SMEs engaging in cross-border business activities through an online portal, thus reducing costs and administrative burdens;
Amendment 68 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Stresses that a well-designed 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 trade; stresses that an increasing number of SMEs are willing to trade across the EU, especially through online transactions, and that the EU VAT system should aim at facilitating such cross-border growth;
Amendment 79 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Observes that the application of reduced rates does not systematically give rise to permanent price reductions for the consumer; that the effectiveness of a reduced rate depends on a number of factors, such as the extent to which businesses pass it on to consumers, its duration over time, the size of the reduction and the complexity of the rate system; that the passing-on of reductions in their entirety is therefore a random process and should not be the basis for policy-making; that it is impossible to targethat requires extensive analysis and impact assessment to make sure that reductions only apply where they can benefit low-income households;
Amendment 80 #
Motion for a resolution
Paragraph 10 a (new)
Paragraph 10 a (new)
10 a. Highlights that reduced rates normally pursue the legitimate purpose of ensuring that essential goods are accessible to everyone; stresses that reduced VAT rates on necessities (e.g. food) tend to make VAT more progressive and should only apply to products which bring social, environmental or cultural benefits; stresses that reduced rates can be particular important in societies with great income disparities and high level of social and economic inequality;
Amendment 89 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Recalls that for it to have a leverage effect, green taxation must be inclusive, fair and 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 94 #
Motion for a resolution
Paragraph 12
Paragraph 12
Amendment 108 #
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 strategyare all options worth exploring; 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 goods;
Amendment 119 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Endorses 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 the costs of diversified VAT systems impose costs on businesses, particularly SMEs via increased compliance costs, create distortionsthe distortions they might cause in the internal market and trade, and incur costs their impact on government through lost revenuerevenue need to be carefully assessed in order to achieve a cohesive, fair and efficient VAT system in the EU; adds that reduced rates are an insufficient means of achieving revenue- distribution or environmental objectives;
Amendment 120 #
Motion for a resolution
Paragraph 16 a (new)
Paragraph 16 a (new)
16 a. Calls for the assessment and adjustment of distorting and environmentally harmful reduced rates;
Amendment 123 #
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%a combination of factors; acknowledges 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 131 #
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 competitivenessefficiency and fairness in the internal market;
Amendment 140 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Stresses that the VAT gap is chiefly attributable to legislative loopholes, lack of resources and digital efficiency in tax administrations, the ineffectiveness of enforcement and control measures, particularly those against tax evasion and avoidance and aggressive tax planning;
Amendment 146 #
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 might better target low-income households and are generally less costly, provided that other conditions are fulfilled;