Accountancy Europe responds to public consultation on VAT in the digital age
The consultation aims to inform EC’s decision-making ahead of a proposal expected in autumn 2022. It seeks stakeholders’ views on whether the current VAT rules are adapted to the digital age, and how digital technology can be used to help Member States fight VAT fraud and benefit businesses.
Views are sought on VAT reporting obligations and e-invoicing, the VAT treatment of the platform economy, and the use of a single EU VAT registration.
Accountancy Europe’s response provides input on all these areas. Read more.
Commission proposes endorsement of changes to IAS 12 standard on deferred taxes
The Regulation proposes to adopt changes to the International Accounting Standard (IAS) 12, following a positive opinion by the European Financial Reporting Advisory Group (EFRAG) and EU Accounting Regulatory Committee (ARC). IAS 12 refers to accounting treatment of income taxes, and these changes apply to deferred taxes on assets and liabilities from a single transaction. They were proposed by the International Accounting Standards Board (IASB).
Both European Parliament and the Council now need to approve EC’s proposal.
Commission publishes study on tax compliance costs for SMEs
The study provides an estimation of the administrative burden for SMEs and large enterprises in the EU and UK stemming from the fiscal rules for tax filing. Tax legislation is often written in a way that addresses all types and sizes of enterprises similarly. SMEs face a comparative disadvantage to large-scaled enterprises (LSEs) as the burden of compliance falls disproportionately on them and because they often do not have sufficient financial and human resources to manage their regulatory obligations. The study argues even small improvements in the regulatory environment for SMEs may have a large positive impact on the EU economy.
Accountancy Europe has provided insight and experience for the study, drawing on the experience of our small practitioner members who service SME clients. Read more
EC publishes public consultation on withholding taxation
The EC is preparing an initiative to improve withholding tax procedures for non-resident investors. The initiative aims to provide Member States with the information to prevent tax abuse in withholding taxes and accommodate a swift and efficient processing of the requests for a refund and/or a relief at source procedures of the excess taxes withheld.
The EC is inviting stakeholders to express their views on the problems and on possible measures and their potential impacts. The input will support the impact assessment the EC is currently carrying out.
The consultation will run until 26 June. Read more