Accountancy Europe publishes two papers on tax reform proposals in light of COVID
The first of the publications looks into immediate, short-term post-COVID tax measures for both direct and indirect tax that governments should consider in order to support economic recovery. Some of these measures have cross-border impacts so the paper also highlights the role of the European Commission (EC) and international organisations in sharing best practice and coordinating efforts.
The second publication puts forward a number of long-term tax policy recommendations to build a resilient post-COVID tax system. Governments should consider the adequacy of their current tax systems and, after a thorough analysis, whether they should broaden their tax base, put increasing emphasis on certain forms of taxation or introduce new taxes. Businesses and their advisors, in turn, should be prepared to play their part in the post-COVID recovery, acknowledging governments’ roles in their survival and adapting their tax policy to new societal expectations. These include enhanced transparency, forsaking abusive tax practices, and working with tax authorities in a cooperative manner.
EC proposes to exempt from VAT vital goods and services distributed by the EU in times of crisis
The initiative aims to maximise the efficiency of EU funds used in the public interest to respond to crises, such as natural disasters and public health emergencies. Once in place, the new measures will allow the EC and EU agencies and bodies to import and purchase certain goods and services VAT-free when those purchases are being distributed during emergency response in the EU.
Disclaimer: The information contained in the present page is general and does not constitute legal advice. Before taking any decision or action on the above information you should take the appropriate professional advice.