Advances in administrative cooperation in the field of taxation [EU Legislation in Progress]

Written by Miroslava Karaboytcheva (1st edition),

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The digitalisation of the economy opens the door to new cross-border economic activities that make it possible to under-report income and under-pay tax. It also presents new challenges for tax administrations, already faced by limited access to information at the national level. Hence, in July 2020 the Commission proposed to amend the provisions on information exchange and administrative cooperation and to include the automatic exchange of data on information declared by digital platform operators in their scope. The goal is to ensure that sellers on digital platforms pay their fair share of taxes, align EU countries to the digital economy, and close the gaps for tax evasion and avoidance. Right now, having secure tax revenues is vital for the provision of support to the people and businesses most in need.

The Parliament’s ECON committee adopted its report on the proposal for an amended Directive on Administrative Cooperation (DAC7) on 4 February 2021. The report is expected to be voted in plenary in March 2021. On 1 December 2020, the Council reached agreement on the proposal, and will thus be in a position to adopt it once Parliament’s opinion is delivered.

Complete version

timeline CNS voted in plenary

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