EU to put off new tax rules due to coronavirus crisis
Tax calculator
(BRUSSELS) - The EU Commission decided Friday to postpone entry into force of two EU taxation measures to take account of difficulties businesses and Member States are currently facing with the coronavirus crisis.
First, the Commission proposed to postpone the entry into application of the VAT e-commerce package by 6 months.
These rules will now apply as of 1 July 2021 instead of 1 January 2021, giving Member States and businesses more time to prepare for the new VAT e-commerce rules.
Second, the Commission decided to propose deferring certain deadlines for filing and exchanging information under the Directive on Administrative Cooperation (DAC).
Based on the proposed changes, EU Member States will have three additional months to exchange information on financial accounts of which the beneficiaries are tax residents in another Member State.
Similarly, Member States will have three additional months to exchange information on certain cross-border tax planning arrangements.
The Commission says it remains committed to fighting against tax evasion and avoidance. Both the European Parliament and the Council have been informed about these proposals.
The EU executive adds that it counts on both institutions to adopt these proposals as soon as possible in order to provide legal certainty to all stakeholders.