# C_2019433EN.01020301.xml

| 23.12.2019 | EN | Official Journal of the European Union | C 433/203 |
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23.12.2019

EN

Official Journal of the European Union

C 433/203

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P8_TA(2018)0319

Common system of value added tax as regards the special scheme for small enterprises *

European Parliament legislative resolution of 11 September 2018 on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax as regards the special scheme for small enterprises (COM(2018)0021 – C8-0022/2018 – 2018/0006(CNS))

(Special legislative procedure – consultation)

(2019/C 433/26)

The European Parliament,

| — | having regard to the Commission proposal to the Council (COM(2018)0021), |
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—

having regard to the Commission proposal to the Council (COM(2018)0021),

| — | having regard to Article 113 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C8-0022/2018), |
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—

having regard to Article 113 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C8-0022/2018),

| — | having regard to Rule 78c of its Rules of Procedure, |
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—

having regard to Rule 78c of its Rules of Procedure,

| — | having regard to the report of the Committee on Economic and Monetary Affairs (A8-0260/2018), |
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—

having regard to the report of the Committee on Economic and Monetary Affairs (A8-0260/2018),

| 1. | Approves the Commission proposal as amended; |
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1.

| 2. | Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union; |
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2.

| 3. | Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament; |
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3.

| 4. | Asks the Council to consult Parliament again if it intends to substantially amend the Commission proposal; |
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4.

| 5. | Instructs its President to forward its position to the Council, the Commission and the national parliaments. |
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5.

Amendment 1

Proposal for a directive

Recital 1

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| (1) | Council Directive 2006/112/EC (1) allows Member States to continue to apply their special schemes to small enterprises in accordance with common provisions and with a view to closer harmonisation. However, those provisions are outdated and do not
  reduce
  the compliance burden of small enterprises as they were designed for a common system of value added tax (VAT) based on taxation in the Member State of origin. |

Text proposed by the Commission

Amendment

(1)

Council Directive 2006/112/EC (1) allows Member States to continue to apply their special schemes to small enterprises in accordance with common provisions and with a view to closer harmonisation. However, those provisions are outdated and do not
  reduce
  the compliance burden of small enterprises as they were designed for a common system of value added tax (VAT) based on taxation in the Member State of origin.

| (1) | Council Directive 2006/112/EC (2) allows Member States to continue to apply their special schemes to small enterprises in accordance with common provisions and with a view to closer harmonisation. However, those provisions are outdated and do not
  fulfil their objective of reducing
  the compliance burden of small enterprises as they were designed for a common system of value added tax (VAT) based on taxation in the Member State of origin. |
| --- | --- |

(1)

Council Directive 2006/112/EC (2) allows Member States to continue to apply their special schemes to small enterprises in accordance with common provisions and with a view to closer harmonisation. However, those provisions are outdated and do not
  fulfil their objective of reducing
  the compliance burden of small enterprises as they were designed for a common system of value added tax (VAT) based on taxation in the Member State of origin.

Amendment 2

Proposal for a directive

Recital 2

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| (2) | In its VAT action plan (3), the Commission announced a comprehensive simplification package for small enterprises aimed at reducing their administrative burden and helping create a fiscal environment to facilitate their growth and the development of cross-border trade.
  This would entail
  a review of the special scheme for small enterprises as outlined in the Communication on the follow-up to the action plan
  on VAT

   (4). The review of the special scheme for small enterprises constitutes therefore an important element of the reform package set out in the VAT action plan. |

Text proposed by the Commission

Amendment

(2)

In its VAT action plan (3), the Commission announced a comprehensive simplification package for small enterprises aimed at reducing their administrative burden and helping create a fiscal environment to facilitate their growth and the development of cross-border trade.
  This would entail
  a review of the special scheme for small enterprises as outlined in the Communication on the follow-up to the action plan
  on VAT

   (4). The review of the special scheme for small enterprises constitutes therefore an important element of the reform package set out in the VAT action plan.

| (2) | In its VAT action plan (5), the Commission announced a comprehensive simplification package for small enterprises aimed at reducing their administrative burden and helping
  to
  create a fiscal environment to facilitate their growth and the development of cross-border trade,
  as well as to increase VAT compliance. Small enterprises in the Union are particularly active in certain sectors which operate across borders, such as construction, communications, food service and retail trade, and can constitute an important source of employment. To achieve the objectives of the VAT action plan
  , a review of the special scheme for small enterprises as outlined in the Communication on the follow-up to the
  VAT
  action plan (6)

  is necessary
  . The review of the special scheme for small enterprises constitutes therefore an important element of the reform package set out in the VAT action plan. |
| --- | --- |

(2)

In its VAT action plan (5), the Commission announced a comprehensive simplification package for small enterprises aimed at reducing their administrative burden and helping
  to
  create a fiscal environment to facilitate their growth and the development of cross-border trade,
  as well as to increase VAT compliance. Small enterprises in the Union are particularly active in certain sectors which operate across borders, such as construction, communications, food service and retail trade, and can constitute an important source of employment. To achieve the objectives of the VAT action plan
  , a review of the special scheme for small enterprises as outlined in the Communication on the follow-up to the
  VAT
  action plan (6)

  is necessary
  . The review of the special scheme for small enterprises constitutes therefore an important element of the reform package set out in the VAT action plan.

Amendment 3

Proposal for a directive

Recital 3

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| (3) | The review of this special scheme is closely linked to the Commission’s proposal setting out the principles for a definitive VAT system for cross-border business-to-business trade between Member States on the basis of the taxation of cross-border supplies of goods in the Member State of destination (7). The VAT system’s shift towards destination-based taxation has identified that a number of the current rules are not suited for a destination-based tax system. |

Text proposed by the Commission

Amendment

(3)

The review of this special scheme is closely linked to the Commission’s proposal setting out the principles for a definitive VAT system for cross-border business-to-business trade between Member States on the basis of the taxation of cross-border supplies of goods in the Member State of destination (7). The VAT system’s shift towards destination-based taxation has identified that a number of the current rules are not suited for a destination-based tax system.

| (3) | The review of this special scheme is closely linked to the Commission’s proposal setting out the principles for a definitive VAT system for cross-border business-to-business trade between Member States on the basis of the taxation of cross-border supplies of goods in the Member State of destination (8). The VAT system’s shift towards destination-based taxation has identified that a number of the current rules are not suited for a destination-based tax system.
  The main difficulties of enhanced cross-border trade for small enterprises arise because of the complex and diverse rules across the Union relating to VAT, as well as the fact that the national exemption for small enterprises only benefits small enterprises in the Member State in which they are established. |
| --- | --- |

(3)

The review of this special scheme is closely linked to the Commission’s proposal setting out the principles for a definitive VAT system for cross-border business-to-business trade between Member States on the basis of the taxation of cross-border supplies of goods in the Member State of destination (8). The VAT system’s shift towards destination-based taxation has identified that a number of the current rules are not suited for a destination-based tax system.
  The main difficulties of enhanced cross-border trade for small enterprises arise because of the complex and diverse rules across the Union relating to VAT, as well as the fact that the national exemption for small enterprises only benefits small enterprises in the Member State in which they are established.

Amendment 4

Proposal for a directive

Recital 4

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| (4) | In order to address the issue of the disproportionate compliance burden faced by small enterprises, simplification measures should be available not only to enterprises that are exempt under the current rules, but also to those considered small in economic terms. For the purposes of the simplification of the VAT rules, enterprises would be considered ‘small’if their turnover qualifies them as micro enterprises under the general definition provided for in Commission Recommendation 2003/361/EC (9). |

Text proposed by the Commission

Amendment

(4)

In order to address the issue of the disproportionate compliance burden faced by small enterprises, simplification measures should be available not only to enterprises that are exempt under the current rules, but also to those considered small in economic terms. For the purposes of the simplification of the VAT rules, enterprises would be considered ‘small’if their turnover qualifies them as micro enterprises under the general definition provided for in Commission Recommendation 2003/361/EC (9).

| (4) | In order to address the issue of the disproportionate compliance burden faced by small enterprises, simplification measures should be available not only to enterprises that are exempt under the current rules, but also to those considered small in economic terms.
  The availability of such measures is particularly relevant as a majority of small enterprises, whether exempted or not, are in practice obliged to use the services of advisors or external consultants in order to assist them in complying with their VAT obligations, which adds a financial burden on those enterprises.
  For the purposes of the simplification of the VAT rules, enterprises would be considered ‘small’if their turnover qualifies them as micro enterprises under the general definition provided for in Commission Recommendation 2003/361/EC (10). |
| --- | --- |

(4)

In order to address the issue of the disproportionate compliance burden faced by small enterprises, simplification measures should be available not only to enterprises that are exempt under the current rules, but also to those considered small in economic terms.
  The availability of such measures is particularly relevant as a majority of small enterprises, whether exempted or not, are in practice obliged to use the services of advisors or external consultants in order to assist them in complying with their VAT obligations, which adds a financial burden on those enterprises.
  For the purposes of the simplification of the VAT rules, enterprises would be considered ‘small’if their turnover qualifies them as micro enterprises under the general definition provided for in Commission Recommendation 2003/361/EC (10).

Amendment 5

Proposal for a directive

Recital 6

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| (6) | Small enterprises may only benefit from the exemption where their annual turnover is below the threshold applied by the Member State in which the VAT is due. In setting their threshold, Member States should abide by the rules on thresholds laid down by Directive 2006/112/EC. Those rules, most of which were put in place in 1977, are no longer suitable. |

Text proposed by the Commission

Amendment

(6)

Small enterprises may only benefit from the exemption where their annual turnover is below the threshold applied by the Member State in which the VAT is due. In setting their threshold, Member States should abide by the rules on thresholds laid down by Directive 2006/112/EC. Those rules, most of which were put in place in 1977, are no longer suitable.

| (6) | Small enterprises may only benefit from the exemption where their annual turnover is below the threshold applied by the Member State in which the VAT is due. In setting their threshold, Member States should abide by the rules on thresholds laid down by Directive 2006/112/EC. Those rules, most of which were put in place in 1977, are no longer suitable.
  For reasons of flexibility and to ensure that it is possible for Member States to set appropriate lower thresholds proportional to the size and the needs of their economy, only maximum thresholds should be set at Union level. |
| --- | --- |

(6)

Small enterprises may only benefit from the exemption where their annual turnover is below the threshold applied by the Member State in which the VAT is due. In setting their threshold, Member States should abide by the rules on thresholds laid down by Directive 2006/112/EC. Those rules, most of which were put in place in 1977, are no longer suitable.
  For reasons of flexibility and to ensure that it is possible for Member States to set appropriate lower thresholds proportional to the size and the needs of their economy, only maximum thresholds should be set at Union level.

Amendment 6

Proposal for a directive

Recital 8

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| (8) | Member States should be left to set their national threshold for the exemption at the level that suits their economic and political conditions best, subject to the upper threshold provided for under this Directive. In this regard, it should be clarified that where Member States apply different thresholds, this would need to be based on objective criteria. |

Text proposed by the Commission

Amendment

(8)

Member States should be left to set their national threshold for the exemption at the level that suits their economic and political conditions best, subject to the upper threshold provided for under this Directive. In this regard, it should be clarified that where Member States apply different thresholds, this would need to be based on objective criteria.

| (8) | Member States should be left to set their national threshold for the exemption at the level that suits their economic and political conditions best, subject to the upper threshold provided for under this Directive. In this regard, it should be clarified that where Member States apply different thresholds, this would need to be based on objective criteria.
  In order to facilitate cross-border business, the list of national thresholds for exemption should be easily accessible to all small enterprises willing to operate in several Member States. |
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(8)

Member States should be left to set their national threshold for the exemption at the level that suits their economic and political conditions best, subject to the upper threshold provided for under this Directive. In this regard, it should be clarified that where Member States apply different thresholds, this would need to be based on objective criteria.
  In order to facilitate cross-border business, the list of national thresholds for exemption should be easily accessible to all small enterprises willing to operate in several Member States.

Amendment 7

Proposal for a directive

Recital 12

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| (12) | Where an exemption applies, small enterprises availing themselves of the exemption should, at a minimum, have access to simplified VAT registration, invoicing, accounting and reporting obligations. |

Text proposed by the Commission

Amendment

(12)

Where an exemption applies, small enterprises availing themselves of the exemption should, at a minimum, have access to simplified VAT registration, invoicing, accounting and reporting obligations.

| (12) | Where an exemption applies, small enterprises availing themselves of the exemption should, at a minimum, have access to simplified VAT registration, invoicing, accounting and reporting obligations.
  In order to avoid confusion and legal uncertainty in Member States, the Commission should produce guidelines on simplified registration and accounting, explaining in more detail the procedures to be simplified and to what extent. By ... [three years after the date of entry into force of this Directive], that simplification should be subject to evaluation by the Commission and Member States to assess whether it has an added value for, and a real positive impact on, enterprises and consumers. |
| --- | --- |

(12)

Where an exemption applies, small enterprises availing themselves of the exemption should, at a minimum, have access to simplified VAT registration, invoicing, accounting and reporting obligations.
  In order to avoid confusion and legal uncertainty in Member States, the Commission should produce guidelines on simplified registration and accounting, explaining in more detail the procedures to be simplified and to what extent. By ... [three years after the date of entry into force of this Directive], that simplification should be subject to evaluation by the Commission and Member States to assess whether it has an added value for, and a real positive impact on, enterprises and consumers.

Amendment 8

Proposal for a directive

Recital 13

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| (13) | Furthermore, in order to ensure compliance with conditions for exemption granted by a Member State to enterprises not established there, it is necessary to require prior notification of their intention to use the exemption. Such notification should be made by the
  small enterprise to the
  Member State
  where it is established. That Member State
  should thereafter, based on the information declared on the turnover of that enterprise,
  provide that information to
  the other Member States concerned. |

Text proposed by the Commission

Amendment

(13)

Furthermore, in order to ensure compliance with conditions for exemption granted by a Member State to enterprises not established there, it is necessary to require prior notification of their intention to use the exemption. Such notification should be made by the
  small enterprise to the
  Member State
  where it is established. That Member State
  should thereafter, based on the information declared on the turnover of that enterprise,
  provide that information to
  the other Member States concerned.

| (13) | Furthermore, in order to ensure compliance with conditions for exemption granted by a Member State to enterprises not established there, it is necessary to require prior notification of their intention to use the exemption. Such notification should be made
  through an online portal to be set up
  by the
  Commission. The
  Member State
  of establishment
  should thereafter, based on the information declared on the turnover of that enterprise,
  inform
  the other Member States concerned. 
  Small enterprises can at any time notify their Member State of registration of their wish to revert back to the general VAT system. |
| --- | --- |

(13)

Furthermore, in order to ensure compliance with conditions for exemption granted by a Member State to enterprises not established there, it is necessary to require prior notification of their intention to use the exemption. Such notification should be made
  through an online portal to be set up
  by the
  Commission. The
  Member State
  of establishment
  should thereafter, based on the information declared on the turnover of that enterprise,
  inform
  the other Member States concerned. 
  Small enterprises can at any time notify their Member State of registration of their wish to revert back to the general VAT system.

Amendment 9

Proposal for a directive

Recital 15

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| (15) | To reduce the compliance burden of small enterprises that are not exempted, Member States should be required to simplify VAT registration and record keeping
  and to prolong tax periods so as to provide for less frequent
  filing
  of
  VAT returns. |

Text proposed by the Commission

Amendment

(15)

To reduce the compliance burden of small enterprises that are not exempted, Member States should be required to simplify VAT registration and record keeping
  and to prolong tax periods so as to provide for less frequent
  filing
  of
  VAT returns.

| (15) | To reduce the compliance burden of small enterprises that are not exempted, Member States should be required to simplify VAT registration and record keeping.
  Moreover, a one-stop shop for
  filing VAT returns
  in different Member States should be established by the Commission
  . |
| --- | --- |

(15)

To reduce the compliance burden of small enterprises that are not exempted, Member States should be required to simplify VAT registration and record keeping.
  Moreover, a one-stop shop for
  filing VAT returns
  in different Member States should be established by the Commission
  .

Amendment 10

Proposal for a directive

Recital 17

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| (17) | The objective of this Directive is to reduce the compliance burden of small enterprises, which cannot be sufficiently achieved by the Member States and can therefore be better achieved at Union level. As a result, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality as set out in Article 5, this Directive does not go beyond what is necessary in order to achieve these objectives. |

Text proposed by the Commission

Amendment

(17)

The objective of this Directive is to reduce the compliance burden of small enterprises, which cannot be sufficiently achieved by the Member States and can therefore be better achieved at Union level. As a result, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality as set out in Article 5, this Directive does not go beyond what is necessary in order to achieve these objectives.

| (17) | The objective of this Directive is to reduce the compliance burden of small enterprises, which cannot be sufficiently achieved by the Member States and can therefore be better achieved at Union level. As a result, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality as set out in Article 5, this Directive does not go beyond what is necessary in order to achieve these objectives.
  Nonetheless, VAT controls arising as a result of compliance processes are valuable anti-tax fraud instruments and easing the compliance burden for small enterprises is not to be done at the expense of the fight against VAT fraud. |
| --- | --- |

(17)

The objective of this Directive is to reduce the compliance burden of small enterprises, which cannot be sufficiently achieved by the Member States and can therefore be better achieved at Union level. As a result, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality as set out in Article 5, this Directive does not go beyond what is necessary in order to achieve these objectives.
  Nonetheless, VAT controls arising as a result of compliance processes are valuable anti-tax fraud instruments and easing the compliance burden for small enterprises is not to be done at the expense of the fight against VAT fraud.

Amendment 11

Proposal for a directive

Article 1 – paragraph 1 – point 12

Directive 2006/112/EC

Article 284 – paragraph 4 – subparagraph 1

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| Prior to availing itself
  of the exemption in
  other Member States, the small enterprise shall notify the
  Member State
  in which it is established
  . | | The Commission shall set up an online portal through which small enterprises that wish to avail themselves
  of the exemption in
  another
  Member State
  shall register
  . |

Text proposed by the Commission

Amendment

Prior to availing itself
  of the exemption in
  other Member States, the small enterprise shall notify the
  Member State
  in which it is established
  .

The Commission shall set up an online portal through which small enterprises that wish to avail themselves
  of the exemption in
  another
  Member State
  shall register
  .

Amendment 12

Proposal for a directive

Article 1 – paragraph 1 – point 12

Directive 2006/112/EC

Article 284 – paragraph 4 – subparagraph 2

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| Where a small enterprise avails itself of the exemption in Member States other than that in which it is established, the Member State of establishment shall take all measures necessary to ensure the accurate declaration of the Union annual turnover and the Member State annual turnover by the small enterprise and shall inform the tax authorities of the other Member States concerned in which the small enterprise carries out a supply. | | Where a small enterprise avails itself of the exemption in Member States other than that in which it is established, the Member State of establishment shall take all measures necessary to ensure the accurate declaration of the Union annual turnover and the Member State annual turnover by the small enterprise and shall inform the tax authorities of the other Member States concerned in which the small enterprise carries out a supply.
  Member States shall also ensure that they have sufficient knowledge of the status of small enterprises and of their shareholding or ownership relationships, so as to be able to confirm their status as small enterprises. |

Text proposed by the Commission

Amendment

Where a small enterprise avails itself of the exemption in Member States other than that in which it is established, the Member State of establishment shall take all measures necessary to ensure the accurate declaration of the Union annual turnover and the Member State annual turnover by the small enterprise and shall inform the tax authorities of the other Member States concerned in which the small enterprise carries out a supply.

Where a small enterprise avails itself of the exemption in Member States other than that in which it is established, the Member State of establishment shall take all measures necessary to ensure the accurate declaration of the Union annual turnover and the Member State annual turnover by the small enterprise and shall inform the tax authorities of the other Member States concerned in which the small enterprise carries out a supply.
  Member States shall also ensure that they have sufficient knowledge of the status of small enterprises and of their shareholding or ownership relationships, so as to be able to confirm their status as small enterprises.

Amendment 13

Proposal for a directive

Article 1 – paragraph 1 – point 15

Directive 2006/112/EC

Article 288a – paragraph 1

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| Where during a subsequent calendar year the Member State annual turnover of a small enterprise exceeds the exemption threshold referred to in Article 284(1), the small enterprise shall be able to continue to benefit from the exemption for
  that year
  , provided that its Member State annual turnover during
  that year
  does not exceed the threshold set out in Article 284(1) by more than
  50%
  . | | Where during a subsequent calendar year the Member State annual turnover of a small enterprise exceeds the exemption threshold referred to in Article 284(1), the small enterprise shall be able to continue to benefit from the exemption for
  two further years
  , provided that its Member State annual turnover during
  those two years
  does not exceed the threshold set out in Article 284(1) by more than
  33%
  . |

Text proposed by the Commission

Amendment

Where during a subsequent calendar year the Member State annual turnover of a small enterprise exceeds the exemption threshold referred to in Article 284(1), the small enterprise shall be able to continue to benefit from the exemption for
  that year
  , provided that its Member State annual turnover during
  that year
  does not exceed the threshold set out in Article 284(1) by more than
  50%
  .

Where during a subsequent calendar year the Member State annual turnover of a small enterprise exceeds the exemption threshold referred to in Article 284(1), the small enterprise shall be able to continue to benefit from the exemption for
  two further years
  , provided that its Member State annual turnover during
  those two years
  does not exceed the threshold set out in Article 284(1) by more than
  33%
  .

Amendment 14

Proposal for a directive

Article 1 – paragraph 1 – point 17

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| (17) | Articles 291
  to 294
  are deleted; |

Text proposed by the Commission

Amendment

(17)

Articles 291
  to 294
  are deleted;

| (17) | Articles 291
  and 292
  are deleted; |
| --- | --- |

(17)

Articles 291
  and 292
  are deleted;

Amendment 15

Proposal for a directive

Article 1 – paragraph 1 – point 17 a (new)

Directive 2006/112/EC

Article 293 – paragraph 1

| Present text | | Amendment |
| --- | --- | --- |
| Every four years starting from the adoption of this Directive, the Commission shall present to the Council, on the basis of information obtained from the Member States, a report on the application of this Chapter, together, where appropriate and taking into account the need to ensure the long-term convergence of national regulations, with proposals on the following subjects:






  (1) | improvements to the special scheme for small enterprises; |

Present text

Amendment

Every four years starting from the adoption of this Directive, the Commission shall present to the Council, on the basis of information obtained from the Member States, a report on the application of this Chapter, together, where appropriate and taking into account the need to ensure the long-term convergence of national regulations, with proposals on the following subjects:

(1)

improvements to the special scheme for small enterprises;

| (2) | the adaptation of national systems as regards exemptions and
  graduated tax relief
  ; |
| --- | --- |

(2)

the adaptation of national systems as regards exemptions and
  graduated tax relief
  ;

| (3) | the adaptation of the ceilings provided for in Section 2. |
| --- | --- |

(3)

the adaptation of the ceilings provided for in Section 2.

| (17a) | in Article 293, paragraph 1 is replaced by the following: |
| --- | --- |

(17a)

‘Every four years starting from the adoption of this Directive, the Commission shall present to
  the European Parliament and
  the Council, on the basis of information obtained from the Member States, a report on the application of this Chapter, together, where appropriate and taking into account the need to ensure the long-term convergence of national regulations, with proposals on the following subjects:

| (i) | improvements to the special scheme for small enterprises; |
| --- | --- |

(i)

improvements to the special scheme for small enterprises;

| (ii) | the adaptation of national systems as regards exemptions and
  the possibility of harmonising exemption thresholds across the Union
  ; |
| --- | --- |

(ii)

the adaptation of national systems as regards exemptions and
  the possibility of harmonising exemption thresholds across the Union
  ;

| (iii) | the adaptation of the ceilings provided for in Section 2.’ |
| --- | --- |

(iii)

the adaptation of the ceilings provided for in Section 2.’

Amendment 16

Amendment 16

Proposal for a directive

Proposal for a directive

Article 1 – paragraph 1 – point 17 b (new)

Article 1 – paragraph 1 – point 17 b (new)

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| | | (17b) | Article 294 is deleted; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(17b)

Article 294 is deleted;

Amendment 17

Amendment 17

Proposal for a directive

Proposal for a directive

Article 1 – paragraph 1 – point 18

Article 1 – paragraph 1 – point 18

Directive 2006/112/EC

Article 294e

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| Article 294e
  Member States
  may
  release exempt small enterprises from the obligation to submit a VAT return laid down in Article 250.


  Where this option is not exercised, Member States
  shall allow such exempt small enterprises to submit a simplified VAT return to cover the period of a calendar year. However, small enterprises may opt for the application of the tax period set in accordance with Article 252. | | Article 294e
  Member States
  shall either
  release exempt small enterprises from the obligation to submit a VAT return laid down in Article 250
  or they
  shall allow such exempt small enterprises to submit a simplified VAT return –
  that includes at least the following information: chargeable VAT, deductible VAT, net VAT amount (payable or receivable), total value of input transactions and total value of output transactions
  – to cover the period of a calendar year. However, small enterprises may opt for the application of the tax period set in accordance with Article 252. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 294e

Member States
  may
  release exempt small enterprises from the obligation to submit a VAT return laid down in Article 250.

Where this option is not exercised, Member States
  shall allow such exempt small enterprises to submit a simplified VAT return to cover the period of a calendar year. However, small enterprises may opt for the application of the tax period set in accordance with Article 252.

Article 294e

Member States
  shall either
  release exempt small enterprises from the obligation to submit a VAT return laid down in Article 250
  or they
  shall allow such exempt small enterprises to submit a simplified VAT return –
  that includes at least the following information: chargeable VAT, deductible VAT, net VAT amount (payable or receivable), total value of input transactions and total value of output transactions
  – to cover the period of a calendar year. However, small enterprises may opt for the application of the tax period set in accordance with Article 252.

Amendment 18

Amendment 18

Proposal for a directive

Proposal for a directive

Article 1 – paragraph 1 – point 18

Article 1 – paragraph 1 – point 18

Directive 2006/112/EC

Article 294i

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| Article 294i


  For small enterprises the tax period to be covered in a VAT return shall be the period of a calendar year. However, small enterprises may opt for application of the tax period set in accordance with Article 252. | | deleted |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 294i

For small enterprises the tax period to be covered in a VAT return shall be the period of a calendar year. However, small enterprises may opt for application of the tax period set in accordance with Article 252.

deleted

deleted

Amendment 19

Amendment 19

Proposal for a directive

Proposal for a directive

Article 1 – paragraph 1 – point 18

Article 1 – paragraph 1 – point 18

Directive 2006/112/EC

Article 294i a (new)

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| | | Article 294i a


  The Commission shall establish a one-stop shop through which small enterprises can file VAT returns of the different Member States in which they are operating. The Member State of establishment shall be responsible for VAT collection. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 294i a

The Commission shall establish a one-stop shop through which small enterprises can file VAT returns of the different Member States in which they are operating. The Member State of establishment shall be responsible for VAT collection.

Amendment 20

Amendment 20

Proposal for a directive

Proposal for a directive

Article 1 – paragraph 1 – point 18

Article 1 – paragraph 1 – point 18

Directive 2006/112/EC

Article 294j

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| Article 294j


  Notwithstanding Article 206, Member States shall not require interim payments to be made by small enterprises. | | deleted |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Article 294j

Notwithstanding Article 206, Member States shall not require interim payments to be made by small enterprises.

deleted

deleted

Amendment 21

Amendment 21

Proposal for a directive

Proposal for a directive

Article 1a (new)

Article 1a (new)

Regulation (EU) No 904/2010

Article 31 – paragraph 1

| Present text | | Amendment |
| --- | --- | --- |
| 1.   1. The competent authorities of each Member State shall ensure that persons involved in the intra-Community supply of goods or of services and non-established taxable persons supplying telecommunication services, broadcasting services and electronically supplied services, in particular those referred to in Annex II to Directive 2006/112/EC, are allowed to obtain, for the purposes of such transactions, confirmation by electronic means of the validity of the VAT identification number of any specified person as well as the associated name and address. This information shall correspond to the data referred to in Article 17. | | Article 1a


  Regulation (EU) No 904/2010 is amended as follows:




  In Article 31, paragraph 1 is replaced by the following:




  ‘1.   The competent authorities of each Member State shall ensure that persons involved in the intra-Community supply of goods or of services and non-established taxable persons supplying telecommunication services, broadcasting services and electronically supplied services, in particular those referred to in Annex II to Directive 2006/112/EC, are allowed to obtain, for the purposes of such transactions, confirmation by electronic means of the validity of the VAT identification number of any specified person as well as the associated name and address. This information shall correspond to the data referred to in Article 17.
  The VAT information exchange system (VIES) shall specify whether or not eligible small enterprises avail themselves of the VAT exemption for small enterprises.
  ’ |

Present text

Present text

Amendment

Amendment

1.   1. The competent authorities of each Member State shall ensure that persons involved in the intra-Community supply of goods or of services and non-established taxable persons supplying telecommunication services, broadcasting services and electronically supplied services, in particular those referred to in Annex II to Directive 2006/112/EC, are allowed to obtain, for the purposes of such transactions, confirmation by electronic means of the validity of the VAT identification number of any specified person as well as the associated name and address. This information shall correspond to the data referred to in Article 17.

Article 1a

Regulation (EU) No 904/2010 is amended as follows:

In Article 31, paragraph 1 is replaced by the following:

‘1.   The competent authorities of each Member State shall ensure that persons involved in the intra-Community supply of goods or of services and non-established taxable persons supplying telecommunication services, broadcasting services and electronically supplied services, in particular those referred to in Annex II to Directive 2006/112/EC, are allowed to obtain, for the purposes of such transactions, confirmation by electronic means of the validity of the VAT identification number of any specified person as well as the associated name and address. This information shall correspond to the data referred to in Article 17.
  The VAT information exchange system (VIES) shall specify whether or not eligible small enterprises avail themselves of the VAT exemption for small enterprises.
  ’

Amendment 22

Amendment 22

Proposal for a directive

Proposal for a directive

Article 2 – paragraph 1 – subparagraph 1

Article 2 – paragraph 1 – subparagraph 1

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| Member States shall adopt and publish, by
  30 June 2022
  at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall communicate to the Commission the text of those provisions without delay. | | Member States shall adopt and publish, by
  31 December 2019
  at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall communicate to the Commission the text of those provisions without delay. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Member States shall adopt and publish, by
  30 June 2022
  at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall communicate to the Commission the text of those provisions without delay.

30 June 2022

Member States shall adopt and publish, by
  31 December 2019
  at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall communicate to the Commission the text of those provisions without delay.

31 December 2019

Amendment 23

Amendment 23

Proposal for a directive

Proposal for a directive

Article 2 – paragraph 1 – subparagraph 2

Article 2 – paragraph 1 – subparagraph 2

| Text proposed by the Commission | | Amendment |
| --- | --- | --- |
| They shall apply those provisions from
  1 July 2022
  . | | They shall apply those provisions from
  1 January 2020
  . |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

They shall apply those provisions from
  1 July 2022
  .

1 July 2022

They shall apply those provisions from
  1 January 2020
  .

1 January 2020

---

(1)  OJ L 347, 11.12.2006, p. 1.

1

(2)  JO L 347 du 11.12.2006, p. 1.

2

(3)  Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee on an action plan on VAT — Towards a single EU VAT area — Time to decide (COM(2016)0148 of 7.4.2016).

3

(4)  Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee on the follow-up to the Action Plan on VAT — Towards a single EU VAT area — Time to act (COM(2017)0566 of 4.10.2017).

4

(5)  Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee on an action plan on VAT — Towards a single EU VAT area — Time to decide (COM(2016)0148 of 7.4.2016).

5

(6)  Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee on the follow-up to the Action Plan on VAT — Towards a single EU VAT area — Time to act (COM(2017)0566 of 4.10.2017).

6

(7)  Proposal for a Council Directive amending Directive 2006/112/EC on the common system of value added tax as regards certain harmonisation and simplification rules within the current value added tax system and introducing the definitive system for the taxation of trade between Member States (COM(2017)0569 of 4.10.2017).

7

(8)  Proposal for a Council Directive amending Directive 2006/112/EC on the common system of value added tax as regards certain harmonisation and simplification rules within the current value added tax system and introducing the definitive system for the taxation of trade between Member States (COM(2017)0569 of 4.10.2017).

8

(9)  Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).

9

(10)  Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).

10

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