Fair Taxation: Member States agree on new tax transparency rules on digital platforms

(Olga DeLawrence, Unsplash)

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


The European Commission welcomes the recent compromise reached by Member States to extend EU tax transparency rules to digital platforms, making sure that those who make money through the sale of goods or services on platforms also pay their fair share of tax. This follows the proposal made by the Commission in July as part of the Action Plan for Fair and Simple Taxation Supporting the Recovery. The agreed proposal on administrative cooperation (DAC 7) will ensure that Member States automatically exchange information on the revenues generated by sellers on digital platforms, whether the platform is located in the EU or not. This will not only allow national authorities to identify situations where tax should be paid, but will also reduce the administrative burden placed on platforms, who often have to deal with several, different national reporting requirements. The proposal also strengthens and clarifies the rules in other areas in which Member States work together to fight tax abuse, for example through joint tax audits.

Paolo Gentiloni, Commissioner for the Economy, said: “It was high time we updated our tax rules to reflect the growing importance of digital platforms for the European economy. Once the new rules discussed today are adopted and implemented, national authorities will automatically exchange information on the revenues generated by sellers on these platforms, and those sellers will benefit from simpler administrative procedures. This is good news for the public purse and good news for honest entrepreneurs.”

Formal adoption will follow once the European Parliament and the Economic and Social Committee give their opinion. The new rules will apply as from 1 January 2023 onwards.

Background

Since its adoption, the original Directive 2011/16/EU has been amended six times, to include information on financial accounts, on tax rulings and advance pricing agreements, on country-by-country reports, on beneficial ownership, on reportable cross border arrangements and now on digital platforms. Last week, the Commission published a roadmap to extend the scope of the Directive to include crypto-assets and e-money (DAC8).

the sting Milestones

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

EU Civil Protection Mechanism must be sufficiently funded to save lives

The power of digital tools to transform mental healthcare

A Year in China

GSMA Outlines New Developments For MWC19 Shanghai

“Our house is on fire.” 16 year-old Greta Thunberg wants action

FROM THE FIELD: Conversations about Conservation

The Amazon is reaching a dangerous tipping-point. We need to scale solutions now if we have any chance of saving it

How we measure stakeholder capitalism will determine our recovery

UN underscores the need to celebrate indigenous peoples, not confine them

South Sudan famine threat: UN food security agency in ‘race against time’

Parliament seals 2014 EU budget and the spending ceiling until 2020

How COVID-19 is taking gaming and esports to the next level

DR Congo: Restore internet services as ‘a matter of urgency’, urges UN expert

COVID-19 put 1.6 billion children out of school. Here’s how to upgrade education post-pandemic

Historic first, as Tolstoy’s War and Peace lands in Geneva, to mark international centenary

Groundbreaking cancer-fighting drugs now included in updated UN list of essential medicines

What the Women’s World Cup can teach us about capitalism

Why remote working doesn’t have to mean alienated employees

What’s an ‘essential service’? Not knowing could block access to key digital services during COVID

Summer 2019 Economic Forecast: Growth clouded by external factors

One-third of Afghans need urgent humanitarian aid, millions suffer ‘acute food insecurity’

Antitrust: Commission consults stakeholders on a possible new competition tool

Disease slashing global meat output, cereals boom, bananas under watch: FAO

DiscoverEU: 20,000 more young people will explore Europe in 2020

‘No safe way’ into battle-scarred Afghan city of Ghazni to deliver aid as traumatized children search for parents

China-EU Special Report: Chinese Premier Li Keqiang endorses China’s big investment on Juncker’s plan at 10th China-EU Business Summit

This Japanese town has banned urban sprawl

EU to relocate 40,000 migrants across the bloc: first step of a long due substantial reform?

How the inventor of the internet plans to make it safe and accessible for everyone

Auditors say EU spending delivers limited value for money but the timing of their report poses questions

What just happened? 5 themes from the COP24 climate talks in Poland

Human trafficking: stronger measures to protect women, children and migrants

How regenerative agroforestry could solve the climate crisis

Two-thirds of global drug deaths now from opioids: UN drugs report

Agreement reached on new EU Solidarity Corps

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

State aid: Commission approves Luxembourg guarantee measure to further support economy in coronavirus outbreak

Nagorno-Karabakh: EU allocates additional €3 million in humanitarian aid for conflict-affected civilians

State aid: Commission approves €24.7 million of Italian support to compensate Alitalia for further damages suffered due to coronavirus outbreak

This 3D-printed steak could help us reduce meat consumption

Powering through the pandemic

Why your next work meeting should be a ‘walk-and-talk’

4 eco-friendly products put sustainable spins on classic practices, from teacups to hankies

Parliament closes legal loophole to stop excessive Ukrainian chicken imports

FROM THE FIELD: South Sudan’s green shoots, highlight environmental recovery from war

6 ways countries can prepare for the next infectious disease pandemic

UN rights expert ‘strongly recommends’ probe by International Criminal Court into ‘decades of crimes’ in Myanmar

Global Citizen-Volunteer Internships

The Bavarians threaten Berlin and Brussels with immigration crisis

EU Member States test their cybersecurity preparedness for free and fair EU elections

With the right leadership, sustainable finance can help us shift to a low-carbon economy

More people now plan to get a COVID-19 vaccine than in December

How to provide health education and thus create better health systems

Mental health during COVID-19 outbreak: who takes care of health professionals?

IMF: All you want to know about Argentina

ICC Appeals Chamber acquits former Congolese Vice President Bemba from war crimes charges

Skills: Five new cross-border collaboration projects selected for Erasmus+ funding to develop excellence in vocational training in Europe

LGBTQI+ and medicine

Syria: UN chief warns Idlib offensive may set off ‘humanitarian catastrophe’

YouTube stars get creative at UN, to promote tolerance

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