Postponement of EU taxation rules due to COVID-19 crisis
The European Commission has announced the postponement of the entry into force of two EU taxation measures taking into account the difficulties that businesses and Member States are facing at the moment as a result of the COVID-19 pandemic. The European Commission has proposed to delay the introduction of the VAT e-commerce package by six months. These rules will apply as of July 1st 2021 instead of January 1st 2021, giving the Member States and businesses more time to prepare for the new VAT e-commerce rules.
In addition, it has also been decided to propose deferring certain deadlines for filing and exchanging information under the Directive on Administrative Cooperation (DAC). Based on the proposed changes, Member States will have three additional months to exchange information on financial accounts of beneficiaries fiscally residing in another Member State (tax residents). Similarly, Member States will have three additional months to exchange information on certain cross-border tax planning arrangements. The European Commission remains committed to fighting tax evasion and avoidance. Both the European Parliament and the Council have been informed about these proposals and are expected to adopt these proposals as soon as possible in order to provide legal certainty to all stakeholders.
To find more information about further extensions, VAT e-commerce, and administrative cooperation, please click here. © European Union, 1995-2020.
