Parliament backs measures to cut e-commerce VAT fraud

amazon

(Christian Wiediger, Unsplash)

This article is brought to you in association with the European Commission.


MEPs supported measures on Tuesday designed to fight e-commerce VAT evasion that would help cut some of the €137 billion lost each year across the EU to VAT fraud.

The measures, contained in two pieces of legislation spearheaded through the Parliament by Lídia Perreira (EPP, PT) and debated on Monday, require payment service providers to collect cross-border e-commerce payment records. A new central electronic storage system would be created so that anti-fraud authorities in member states can process payment information better.

Administrative cooperation among the member states’ tax authorities and payment service providers will also be strengthened.

More effective information-sharing and prosecution

MEPs proposed various improvements to the texts, in a bid to make information-sharing and prosecution more effective. More specifically, some of these improvements include:

  • Setting up a common system for collecting comparable statistics on intra-Community VAT fraud and requiring national estimates of VAT fraud losses to be published;
  • Creating a mandate for the European Public Prosecutor’s Office, in collaboration with national judicial authorities, to ensure that fraudsters are effectively prosecuted in national courts;
  • Member states investing in technology-led tax collection, notably by automatically linking corporate cash registers and sales systems to VAT returns;
  • Improving communication and interoperability between tax-related databases at European Union level;
  • Requiring that payment service providers retain records of payment transactions for a three-year period to assist member states in fighting e-commerce VAT fraud and detecting fraudsters.

The regulation on measures to strengthen administrative cooperation in order to combat VAT fraud was adopted with 590 votes to 19 and 81 abstentions.

The directive on certain requirements for payment service providers was adopted with 591 votes to 18 and 86 abstentions.

Next steps

EU member state ministers must now adopt the two pieces of legislation.

Background

According to Commission estimates, online sales in the EU are worth €550 billion a year – €96 billion of which is cross-border. The new rules should raise €7 billion in VAT revenues for member states.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

The 8 pieces of digital DNA we need to thrive in the AI age

‘Moral obligation and political imperative’ to support Syria on path to peace: Guterres

SDG progress ‘in danger’ of going backwards without change in direction, new UN report reveals

Ride-hailing apps are making the developing world’s traffic problems worse

Sudan: top UN official demands cessation of violence and rape against civilians by security forces

Syria: Civilians bear brunt of unilateral sanctions, exacerbating ‘unparalleled suffering, destruction,’ says UN expert

Tropical Cyclone Idai affects 1.5 million across Mozambique and Malawi, as UN ramps up response

The current devaluation of primary health care professionals

Commission’s feeble response to financial benchmarks fraud

EP President praises Nobel Peace Prize award to Denis Mukwege and Nadia Murad

Virtual Doctor: a core part of modern healthcare?

A critical European young voice on Net Neutrality: the distance between Brussels and Washington

Palestinian students ‘compelled to drop dreams because of financial cuts’

The South China Sea Arbitration: Illegal, Illegitimate and Invalid

Mental health and suicide prevention – what can be done to increase access to mental health services in Morocco

At G20 Summit OECD’s Gurría says collective action vital to tackle global challenges

Pledging ongoing UN support during visit to cyclone-hit areas, Guterres praises resilience of Mozambicans

Policymakers can ensure the 4IR is fairer than the last three

Russia and the EU ‘trade’ natural gas supplies and commercial concessions in and out of Ukraine

Moving from commitment to action on LGBTI equality

Thousands of Syrians in ‘life and death’ struggle amid harsh conditions in remote desert camp, UN warns

As north-west Syria violence reaches ‘horrifying’ new level, UN relief chief says ceasefire is only option

Google’s bare truth: Europe’s Chief denies EU accusations but admits they “don’t always get it right”

UN rights chief calls for release of hundreds abducted and abused in South Sudan

CDNIFY @ TheNextWeb 2014

Modern society has reached its limits. Society 5.0 will liberate us

MEPs call for free movement across borders to be swiftly and fully re-established

Cheap sea transport with low cost seafarers

Keep Africa’s guns ‘from firing in the first place’, UN political chief urges

Why do US presidential elections last so long? And 4 other things you need to know

Parliament boosts consumer rights online and offline

How impact finance can alleviate COVID-19’s economic symptoms

This is what the world’s CEOs really think of AI

Europe plans to send satellites into space to monitor CO2 emissions

Clean air is good for business

Why impoverishment and social exclusion grow in the EU; the affluent north also suffers

Four ways Europe can become a global innovation leader

India’s economy is growing fast, but its poorest areas lag behind. Here’s why this could be about to change

Engaging women and girls in science ‘vital’ for Sustainable Development Goals

The creation and maintenance of smoke-free public spaces in the UK

An overview of mental health impacts on women diagnosed with gynecologic cancer and suicide prevention

Can I still send mail in the time of coronavirus?

Women to save Europe’s own labour resources

Amazon sinks while our breath sinks

Food system failures in our age of abundance

ECB: Growth measures even before the German elections

UN sounds alarm as Venezuelan refugees and migrants passes three million mark

Trade deals’ pure realism: it may take 10 years for a post-Brexit agreement

European Defence Fund on track with €525 million for Eurodrone and other joint research and industrial projects

With Gaza violence ‘escalating as we speak,’ UN envoy calls for ‘immediate stop’

G20 LIVE: G20 Leaders’ Communiqué Antalya Summit, 15-16 November 2015

Sign language protects ‘linguistic identity and cultural diversity’ of all users, says UN chief

Drug laws must be amended to ‘combat racial discrimination’, UN experts say

EU’s new environmental policy on biofuels impacts both the environment and the European citizen

Brexit: UK business fear of a no-deal scenario preparing for the worst

3 vital skills for the age of disruption

Innovating together: connectivity that matters

For how long and at what cost can the ECB continue printing trillions to keep euro area going?

Is mental health really ‘health’?

De-escalation of fighting in Hodeida is key to ‘long-overdue’ restart of Yemen peace talks: UN envoy

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s