The European Commission has replied to a question asked by the MEP Merja Kyllönen (GUE-NGL/FIN) in early-October with regard to the taxation of platform …
Platform undertakings and taxation – 4 December 2015
The European Commission has replied to a question asked by the MEP Merja Kyllönen (GUE-NGL/FIN) in early-October with regard to the taxation of platform undertakings. In her question, Ms. Kyllönen asked the Commission to elaborate what it is planning to do with the view of ensuring that platform undertakings (such as Airbnb and Uber) fulfil their “obligations to society” in the field of taxation, thereby ensuring fair competition between them and conventional market actors.
In his reply, Commissioner Moscovici confirms that although taxation in principle remains a Member State competence, the Commission may take action to tackle cross-border tax evasion. The Commission moreover cooperates with Member States in order to enhance a consistent application of EU VAT rules, including on supplies carried through and by sharing economy platforms. And finally, the Commission has committed to assessing the role of platforms as part of its Digital Single Market Strategy, including on tax.
High VAT rates and VAT compliance gap in Greece – 30 November 2015
The European Commission has replied to a question asked by the MEP Theodoros Zagorakis (EPP/GRE) in early October with regard to a potential correlation between high VAT rates and the VAT compliance gap, with specific focus on Greece. In his question, Mr. Zagorakis asks the Commission whether it feels that there is a link between the VAT compliance gap as well as the high VAT rates “imposed in Greece in recent years”.
In his reply, Commissioner Moscovici confirms that the Commission does not believe that there would be a “direct and strong link” between the two. He however admits that in general higher tax rates may incentivise tax evasion, and that there is consequently a strong argument for “reforms in this area”.