Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

October 12, 2020
2020-6322

European Commission requests feedback on proposed directive to transform EU’s VAT Committee into a ”Comitology Committee”

Background

European Union (EU) value-added tax (VAT) rules are harmonized under the VAT Directive. Therefore, it is important that these rules are implemented in every EU Member State in a fully consistent manner (e.g., by means of implementing acts). Currently, the European Commission (the Commission) has no implementing powers in respect of the VAT Directive.

The only existing tool for the Commission to promote a consistent implementation of VAT rules is an advisory committee set up by the VAT Directive (Article 398) – the ”VAT Committee,” which agrees on non-binding guidance. The VAT Committee is made up of representatives of the Member States and of the Commission and has no competence in the procedure of adoption of the implementing measures. As the Member States are not legally obliged to implement the guidelines of the VAT Committee, the common interpretation of EU VAT law, set forth in these guidelines, is often not put into practice.

Comitology Committee

A change to the VAT Directive is proposed that would allow the Commission to adopt, within a precise scope, implementing acts. This could be done by turning the VAT Committee into a ”Comitology Committee”1 that would oversee the adoption of implementing acts by the Commission. Outside the defined empowerment of the Commission, the Council would retain its competence to adopt implementing rules in the field of VAT.

It is suggested that conferring certain implementing powers on the Commission, subject to the control of that Committee, should contribute to a more uniform application of the EU VAT legislation to the benefit of taxable persons with economic activities in several Member States. In the area of indirect taxation, comitology procedures are already used for administrative cooperation and excise duties.

Calls for feedback

The Commission is now inviting feedback through a ”roadmap”2 procedure which is open until 29 October 2020. Feedback received through this procedure will be taken into consideration in the further development of the initiative. The Commission will summarize the input received in a synopsis report explaining how the input will be incorporated and, if applicable, why certain suggestions will not be included.

Endnotes

1. Comitology in the European Union refers to a process by which EU law is modified or adjusted and takes place within “comitology committees” chaired by the European Commission.

2. EU Commission roadmaps aim to inform citizens and stakeholders about the Commission’s work in order to allow them to provide feedback and to participate effectively in future consultation activities.

_____________________________________________________________________________________________________________

For additional information with respect to this Alert, please contact the following:

Ernst & Young Belastingadviseurs LLP, Amsterdam
Ernst & Young LLP (United Kingdom), London

ATTACHMENT

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more