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2018/0413(CNS) Value added tax (VAT): administrative cooperation in order to combat VAT fraud

Progress: Awaiting committee decision

RoleCommitteeRapporteurShadows
Lead ECON PEREIRA Lídia (icon: EPP EPP) MOLNÁR Csaba (icon: S&D S&D), KOVAŘÍK Ondřej (icon: Renew Renew), SCOTT CATO Molly (icon: Verts/ALE Verts/ALE), JURZYCA Eugen (icon: ECR ECR), PAPADIMOULIS Dimitrios (icon: GUE/NGL GUE/NGL)
Former Responsible Committee ECON
Lead committee dossier:
Legal Basis:
TFEU 113

Events

2019/10/15
   EP - Committee draft report
Documents
2019/07/18
   EP - PEREIRA Lídia (EPP) appointed as rapporteur in ECON
2019/03/19
   DE_BUNDESRAT - Contribution
Documents
2019/01/14
   EP - Committee referral announced in Parliament, 1st reading/single reading
2018/12/12
   EC - Document attached to the procedure
2018/12/12
   EC - Document attached to the procedure
2018/12/12
   EC - Legislative proposal published
Details

PURPOSE: to improve the exchange of information on cross-border payments in order to combat VAT fraud in electronic commerce.

PROPOSED ACT: Council Regulation.

ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.

BACKGROUND: this proposal is part of the package of legislation on the mandatory transmission and exchange of VAT-relevant payment information. It is part of the EU's broader agenda to tackle VAT fraud and improve VAT collection of internet sales .

E-commerce VAT fraud is a common problem for all Member States. Member States alone do not have the information necessary to ensure that the e-commerce VAT rules are correctly applied and to tackle e-commerce VAT fraud.

The exchange of payment data between tax authorities is crucial to combat fraud effectively.

The Commission considers that new tools are necessary for tax authorities to tackle cross-border e-commerce VAT fraud in an effective way.

CONTENT: the proposal seeks to amend Regulation (EU) No 904/2010 on administrative cooperation and fighting fraud in the field of value added tax. This is because the proposal lays down rules for the Member States to collect in a harmonised way the records made electronically available by the payment service providers pursuant to the VAT Directive.

In concrete terms, the proposal:

- sets up a new central electronic system for the storage of the payment information and for the further processing of this information by anti-fraud officials in the Member States within the Eurofisc framework. The new central electronic system for payment information (CESOP) would be developed by the Commission;

- introduces the obligation for Member States to collect recorded data made available electronically from payment service providers in accordance with the VAT Directive. The competent authorities of the Member States should forward to CESOP, on a quarterly basis, the information they collect from payment service providers established in their own territory. A common electronic format for the collection of such data should be adopted by means of implementing acts.

CESOP will correct formal mistakes in the transmitted information (cleansing) and aggregate the overall payment information transferred by the competent authorities of the Member States per payee (recipient of the funds). Then it will analyse the information (e.g. matching payment information with VAT information available to Eurofisc officials) and will allow Member States’ Eurofisc liaison officials to have a complete overview of the payments received by given payees. The information shall be stored in CESOP for two years.

The information on incoming payments will allow Member States to detect domestic suppliers selling goods and services abroad without fulfilling their VAT obligations.

Information on outgoing payments will allow the detection of suppliers established abroad (either in another Member State or outside the Union) that should pay VAT in a given Member State.

The Commission would bear the costs for the development and maintenance of CESOP as well as the costs of maintaining the connection between CESOP and Member States’ national systems, while the Member States would bear the costs of all necessary developments to their national electronic system.

The safeguards laid down under Regulation (EU) No 904/2010 and the European framework on data protection will apply to the exchange of payment information under the present proposal.

Documents

  • Committee draft report: PE641.419
  • Contribution: COM(2018)0813
  • Document attached to the procedure: EUR-Lex
  • Document attached to the procedure: SWD(2018)0487
  • Document attached to the procedure: EUR-Lex
  • Document attached to the procedure: SWD(2018)0488
  • Legislative proposal published: COM(2018)0813
  • Legislative proposal published: EUR-Lex
  • Document attached to the procedure: EUR-Lex SWD(2018)0487
  • Document attached to the procedure: EUR-Lex SWD(2018)0488
  • Committee draft report: PE641.419
  • Contribution: COM(2018)0813

History

(these mark the time of scraping, not the official date of the change)

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Economic and Monetary Affairs
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name: PEREIRA Lídia date: 2019-07-18T00:00:00 group: Group of European People's Party abbr: EPP
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name
AUBRY Manon
group
Confederal Group of the European United Left - Nordic Green Left
abbr
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date
2019-10-15T00:00:00
docs
title: PE641.419
type
Committee draft report
body
EP
committees/0/rapporteur
  • name: PEREIRA Lídia date: 2019-07-18T00:00:00 group: Group of European People's Party abbr: EPP
committees/0/shadows/2
name
JURZYCA Eugen
group
European Conservatives and Reformists Group
abbr
ECR
committees/0/shadows/0
name
MOLNÁR Csaba
group
Group of Progressive Alliance of Socialists and Democrats
abbr
S&D
committees/0/date
    committees/1/date
      committees/0/shadows
      • name: KOVAŘÍK Ondřej group: Renew Europe group abbr: Renew
      commission
      • body: EC dg: Taxation and Customs Union commissioner: MOSCOVICI Pierre
      committees
      • type: Responsible Committee body: EP associated: False committee_full: Economic and Monetary Affairs committee: ECON date:
      • type: Former Responsible Committee body: EP associated: False committee_full: Economic and Monetary Affairs committee: ECON date:
      docs
      • date: 2018-12-12T00:00:00 docs: url: https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SWD:2018:0487:FIN:EN:PDF title: EUR-Lex title: SWD(2018)0487 type: Document attached to the procedure body: EC
      • date: 2018-12-12T00:00:00 docs: url: https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SWD:2018:0488:FIN:EN:PDF title: EUR-Lex title: SWD(2018)0488 type: Document attached to the procedure body: EC
      • date: 2019-03-19T00:00:00 docs: url: http://www.connefof.europarl.europa.eu/connefof/app/exp/COM(2018)0813 title: COM(2018)0813 type: Contribution body: DE_BUNDESRAT
      events
      • date: 2018-12-12T00:00:00 type: Legislative proposal published body: EC docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2018/0813/COM_COM(2018)0813_EN.pdf title: COM(2018)0813 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2018&nu_doc=0813 title: EUR-Lex summary: PURPOSE: to improve the exchange of information on cross-border payments in order to combat VAT fraud in electronic commerce. PROPOSED ACT: Council Regulation. ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion. BACKGROUND: this proposal is part of the package of legislation on the mandatory transmission and exchange of VAT-relevant payment information. It is part of the EU's broader agenda to tackle VAT fraud and improve VAT collection of internet sales . E-commerce VAT fraud is a common problem for all Member States. Member States alone do not have the information necessary to ensure that the e-commerce VAT rules are correctly applied and to tackle e-commerce VAT fraud. The exchange of payment data between tax authorities is crucial to combat fraud effectively. The Commission considers that new tools are necessary for tax authorities to tackle cross-border e-commerce VAT fraud in an effective way. CONTENT: the proposal seeks to amend Regulation (EU) No 904/2010 on administrative cooperation and fighting fraud in the field of value added tax. This is because the proposal lays down rules for the Member States to collect in a harmonised way the records made electronically available by the payment service providers pursuant to the VAT Directive. In concrete terms, the proposal: - sets up a new central electronic system for the storage of the payment information and for the further processing of this information by anti-fraud officials in the Member States within the Eurofisc framework. The new central electronic system for payment information (CESOP) would be developed by the Commission; - introduces the obligation for Member States to collect recorded data made available electronically from payment service providers in accordance with the VAT Directive. The competent authorities of the Member States should forward to CESOP, on a quarterly basis, the information they collect from payment service providers established in their own territory. A common electronic format for the collection of such data should be adopted by means of implementing acts. CESOP will correct formal mistakes in the transmitted information (cleansing) and aggregate the overall payment information transferred by the competent authorities of the Member States per payee (recipient of the funds). Then it will analyse the information (e.g. matching payment information with VAT information available to Eurofisc officials) and will allow Member States’ Eurofisc liaison officials to have a complete overview of the payments received by given payees. The information shall be stored in CESOP for two years. The information on incoming payments will allow Member States to detect domestic suppliers selling goods and services abroad without fulfilling their VAT obligations. Information on outgoing payments will allow the detection of suppliers established abroad (either in another Member State or outside the Union) that should pay VAT in a given Member State. The Commission would bear the costs for the development and maintenance of CESOP as well as the costs of maintaining the connection between CESOP and Member States’ national systems, while the Member States would bear the costs of all necessary developments to their national electronic system. The safeguards laid down under Regulation (EU) No 904/2010 and the European framework on data protection will apply to the exchange of payment information under the present proposal.
      • date: 2019-01-14T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
      procedure
      reference
      2018/0413(CNS)
      title
      Value added tax (VAT): administrative cooperation in order to combat VAT fraud
      subject
      type
      CNS - Consultation procedure
      subtype
      Legislation
      instrument
      legal_basis
      Treaty on the Functioning of the EU TFEU 113
      stage_reached
      Awaiting committee decision
      dossier_of_the_committee
      ECON/9/00408