The European Parliament has adopted a legislative resolution on changes to the EU directive on administrative coordination and exchange of information (DAC) relating to digital platforms. The legislation would require digital platforms to report the income earned by those selling goods and services on their platforms. Tax authorities would also be obliged share this information with each other.
MEPs decided to reduce the time period for replying to a request for information, from six months from the date the request was received down to three months from that date. MEPs also opted to introduce harmonised sanctions against non-EU platforms which fail to register and report their activities in the single market in a single member state. The European Commission is expected to submit a report with a country-by-country assessment of how well the system works, including the efficacy of the required information exchanges.
At an informal ECOFIN meeting on 16 March, EU finance ministers discussed the state of play and way forward in relation to digital taxation. The ministers highlighted their continued support for the ongoing OECD negotiations on a consensus-based solution, and reiterated their readiness to examine EU measures. The Commission confirmed that it is working on a legislative proposal for a ‘digital levy’, which will be designed as a source of additional own resources for the EU. It highlighted that this would be a separate instrument which should not be linked with the corporate tax rules that are being negotiated in the G20/OECD.
The European Parliament has adopted a legislative resolution on changes to the EU directive on administrative coordination and exchange of information (DAC) relating to digital platforms. The legislation would require digital platforms to report the income earned by those selling goods and services on their platforms. Tax authorities would also be obliged share this information with each other.
MEPs decided to reduce the time period for replying to a request for information, from six months from the date the request was received down to three months from that date. MEPs also opted to introduce harmonised sanctions against non-EU platforms which fail to register and report their activities in the single market in a single member state. The European Commission is expected to submit a report with a country-by-country assessment of how well the system works, including the efficacy of the required information exchanges.
At an informal ECOFIN meeting on 16 March, EU finance ministers discussed the state of play and way forward in relation to digital taxation. The ministers highlighted their continued support for the ongoing OECD negotiations on a consensus-based solution, and reiterated their readiness to examine EU measures. The Commission confirmed that it is working on a legislative proposal for a ‘digital levy’, which will be designed as a source of additional own resources for the EU. It highlighted that this would be a separate instrument which should not be linked with the corporate tax rules that are being negotiated in the G20/OECD.
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")