Bundesrat

Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC on the common system of value added tax as regards the special scheme for small enterprises

Scrutiny details

Subsidiarity deadline: 19/03/2018
 
Scrutiny Information

Scrutiny date: 02/03/2018

Subsidiarity Concern:

No Important information to exchange

No Veto

Information on parliamentary scrutiny


Referred to Committees on:


European Union Questions
Finance
Economic Affairs



Lisbon Treaty procedures
 
  Political Dialogue

02/03/2018 | Scrutiny results - COM20180021

The Bundesrat generally welcomes the Commission's initiative to reform the directive 2006/112/EC on the common VAT system in regards of special provisions for small companies as the current provisions for small companies are outdated. The limits for tax exemptions differ considerably, hence, the Bundesrat is in favour of a harmonisation of those limits. The Bundesrat shares the Commission's opinion that the compliance costs for companies should be as low as possible. However, simplified rules for certain companies must not lead to a distortion of competition. The proposed maximum EU-wide turnover limit of 100.000 EUR and the national limit of 85.000 EUR per year could interfere with competition and thus be contrary to the principle of tax neutrality. The Bundesrat stresses that simplifying measures must not interfere with combating tax fraud. In this regard, the Bundesrat is concerned about the intended obligation for member states to allow companies with an annual turnover of less than 2 million EUR to declare their value added taxes only once a year as well as about other intended possible measures to simplify tax compliance for those companies. The Bundesrat is of the opinion that the Commission's suggestions would not only make tax administration and combating value added tax fraud more difficult, but also lead to reduced tax income.


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