# C_2020388EN.01031001.xml

| 13.11.2020 | EN | Official Journal of the European Union | C 388/310 |
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13.11.2020

EN

Official Journal of the European Union

C 388/310

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P8_TA(2018)0496

Common system of value added tax as regards the temporary application of a generalised reverse charge mechanism in relation to supplies of goods and services above a certain threshold *

European Parliament legislative resolution of 11 December 2018 on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax as regards the temporary application of a generalised reverse charge mechanism in relation to supplies of goods and services above a certain threshold (COM(2016)0811 — C8-0023/2017 — 2016/0406(CNS))

(Special legislative procedure — consultation)

(2020/C 388/29)

The European Parliament,

| — | having regard to the Commission proposal to the Council (COM(2016)0811), |
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—

having regard to the Commission proposal to the Council (COM(2016)0811),

| — | having regard to Article 113 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C8-0023/2017), |
| --- | --- |

—

having regard to Article 113 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C8-0023/2017),

| — | 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 (A8-0418/2018), |
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—

having regard to the report of the Committee on Economic and Monetary Affairs (A8-0418/2018),

| 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; |
| --- | --- |

2.

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

3.

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

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 4

| Text proposed by the Commission | Amendment |
| --- | --- |
| (4) | In order to limit the risk of fraud shifting between Member States, all Member States that fulfil certain criteria as regards their fraud level, in particular in relation to carousel fraud, and who are able to establish that other control measures are not sufficient to combat that fraud, should be allowed to use a GRCM. |

Text proposed by the Commission

Amendment

(4)

In order to limit the risk of fraud shifting between Member States, all Member States that fulfil certain criteria as regards their fraud level, in particular in relation to carousel fraud, and who are able to establish that other control measures are not sufficient to combat that fraud, should be allowed to use a GRCM.

| (4) | In order to limit the risk of fraud shifting between Member States, all Member States that fulfil certain criteria as regards their fraud level, in particular in relation to carousel fraud, and who are able to establish that other control measures are not sufficient to combat that fraud, should be allowed to use a GRCM.
  In addition, they should be required to establish that estimated gains in tax compliance and collection expected as a result of the introduction of the GRCM outweigh the estimated overall additional burdens on businesses and tax administrations and that businesses and tax administrations will not incur costs that are higher than those incurred as a result of the application of other control measures. |
| --- | --- |

(4)

In order to limit the risk of fraud shifting between Member States, all Member States that fulfil certain criteria as regards their fraud level, in particular in relation to carousel fraud, and who are able to establish that other control measures are not sufficient to combat that fraud, should be allowed to use a GRCM.
  In addition, they should be required to establish that estimated gains in tax compliance and collection expected as a result of the introduction of the GRCM outweigh the estimated overall additional burdens on businesses and tax administrations and that businesses and tax administrations will not incur costs that are higher than those incurred as a result of the application of other control measures.

Amendment 2

Proposal for a directive

Recital 5

| Text proposed by the Commission | Amendment |
| --- | --- |
| (5) | In addition, also bordering Member States that encounter a serious risk of shift of fraud to their territory, because of the authorisation of that mechanism in another Member State, should be allowed to use the GRCM, where other control measures would be insufficient to combat that risk of fraud. |

Text proposed by the Commission

Amendment

(5)

In addition, also bordering Member States that encounter a serious risk of shift of fraud to their territory, because of the authorisation of that mechanism in another Member State, should be allowed to use the GRCM, where other control measures would be insufficient to combat that risk of fraud.

deleted

Amendment 3

Proposal for a directive

Recital 6

| Text proposed by the Commission | Amendment |
| --- | --- |
| (6) | If Member States choose to apply the GRCM, they should apply it to all supplies of goods and services above a defined threshold per
  invoice
  . The GRCM should not be restricted to any specific sector. |

Text proposed by the Commission

Amendment

(6)

If Member States choose to apply the GRCM, they should apply it to all supplies of goods and services above a defined threshold per
  invoice
  . The GRCM should not be restricted to any specific sector.

| (6) | If Member States choose to apply the GRCM, they should apply it to all
  non-cross-border
  supplies of goods and services above a defined threshold per
  transaction
  . The GRCM should not be restricted to any specific sector. |
| --- | --- |

(6)

If Member States choose to apply the GRCM, they should apply it to all
  non-cross-border
  supplies of goods and services above a defined threshold per
  transaction
  . The GRCM should not be restricted to any specific sector.

Amendment 4

Proposal for a directive

Recital 7 a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (7a) | In order to be able to assess whether the introduction of the GRCM in one Member State results in fraud shifting towards other Member States and to be able to assess the degree of possible disturbances to the functioning of the internal market, it is appropriate to provide for a specific obligation to exchange information between Member States that apply the GRCM and other Member States. All such exchanges of information should be subject to applicable personal data protection and confidentiality provisions. Those provisions provide exemptions and restrictions for safeguarding the interests of Member States and of the Union in the area of taxation. |

Text proposed by the Commission

Amendment

(7a)

In order to be able to assess whether the introduction of the GRCM in one Member State results in fraud shifting towards other Member States and to be able to assess the degree of possible disturbances to the functioning of the internal market, it is appropriate to provide for a specific obligation to exchange information between Member States that apply the GRCM and other Member States. All such exchanges of information should be subject to applicable personal data protection and confidentiality provisions. Those provisions provide exemptions and restrictions for safeguarding the interests of Member States and of the Union in the area of taxation.

Amendment 5

Proposal for a directive

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 1 — subparagraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| Until 30 June 2022 a Member State may, as a Generalised Reverse Charge Mechanism (GRCM), provide that the person liable for payment of VAT is the taxable person to whom supplies of goods and services are made above a threshold of EUR
  10 000
  per invoice, by derogation from Article 193. | Until 30 June 2022 a Member State may, as a Generalised Reverse Charge Mechanism (GRCM), provide that the person liable for payment of VAT is the taxable person to whom supplies of goods and services are made above a threshold of EUR
  25 000
  per invoice, by derogation from Article 193. |

Text proposed by the Commission

Amendment

Until 30 June 2022 a Member State may, as a Generalised Reverse Charge Mechanism (GRCM), provide that the person liable for payment of VAT is the taxable person to whom supplies of goods and services are made above a threshold of EUR
  10 000
  per invoice, by derogation from Article 193.

Until 30 June 2022 a Member State may, as a Generalised Reverse Charge Mechanism (GRCM), provide that the person liable for payment of VAT is the taxable person to whom supplies of goods and services are made above a threshold of EUR
  25 000
  per invoice, by derogation from Article 193.

Amendment 6

Proposal for a directive

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 1 — subparagraph 2 — point a

| Text proposed by the Commission | Amendment |
| --- | --- |
| (a) | it has a VAT gap, expressed as a percentage of the VAT Total Tax Liability, of at least
  5
  percentage points above the Community median VAT gap; |

Text proposed by the Commission

Amendment

(a)

it has a VAT gap, expressed as a percentage of the VAT Total Tax Liability, of at least
  5
  percentage points above the Community median VAT gap;

| (a) | it
  had in 2014, in accordance with the method and figures set out in the 2016 final report dated 23 August 2016 on the VAT gap published by the Commission
  , a VAT gap, expressed as a percentage of the VAT Total Tax Liability, of at least
  15
  percentage points above the Community median VAT gap; |
| --- | --- |

(a)

it
  had in 2014, in accordance with the method and figures set out in the 2016 final report dated 23 August 2016 on the VAT gap published by the Commission
  , a VAT gap, expressed as a percentage of the VAT Total Tax Liability, of at least
  15
  percentage points above the Community median VAT gap;

Amendment 7

Proposal for a directive

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 1 — subparagraph 2 — point b

| Text proposed by the Commission | Amendment |
| --- | --- |
| (b) | it has a carousel fraud level within its total VAT gap of more than 25 %; |

Text proposed by the Commission

Amendment

(b)

it has a carousel fraud level within its total VAT gap of more than 25 %;

| (b) | it has
  , based on the impact assessment that accompanied the legislative proposal for this Article, in the year covered by the report referred to in point (a)
  a carousel fraud level within its total VAT gap of more than 25 %;
  and |
| --- | --- |

(b)

it has
  , based on the impact assessment that accompanied the legislative proposal for this Article, in the year covered by the report referred to in point (a)
  a carousel fraud level within its total VAT gap of more than 25 %;
  and

Amendment 8

Proposal for a directive

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 1 — subparagraph 2 — point c

| Text proposed by the Commission | Amendment |
| --- | --- |
| (c) | it establishes that other control measures are not sufficient to combat carousel fraud on its territory. |

Text proposed by the Commission

Amendment

(c)

it establishes that other control measures are not sufficient to combat carousel fraud on its territory.

| (c) | it establishes that other control measures are not sufficient to combat carousel fraud on its territory
  , in particular by specifying the control measures applied and the particular reasons for their lack of effectiveness, as well as the reasons why VAT administrative cooperation has proven insufficient; and |
| --- | --- |

(c)

it establishes that other control measures are not sufficient to combat carousel fraud on its territory
  , in particular by specifying the control measures applied and the particular reasons for their lack of effectiveness, as well as the reasons why VAT administrative cooperation has proven insufficient; and

Amendment 9

Proposal for a directive

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 1 — subparagraph 2 — point c a (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (ca) | it establishes that the estimated gains in tax compliance and collection expected as a result of the introduction of the GRCM outweigh the expected overall additional burdens on businesses and tax administrations by at least 25 %; and |

Text proposed by the Commission

Amendment

(ca)

it establishes that the estimated gains in tax compliance and collection expected as a result of the introduction of the GRCM outweigh the expected overall additional burdens on businesses and tax administrations by at least 25 %; and

Amendment 10

Proposal for a directive

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 1 — subparagraph 2 — point c b (new)

| Text proposed by the Commission | Amendment |
| --- | --- |
| | (cb) | it establishes that businesses and tax administrations will not incur, as a result of the introduction of the GRCM, costs that are higher than those incurred as a result of the application of other control measures. |

Text proposed by the Commission

Amendment

(cb)

it establishes that businesses and tax administrations will not incur, as a result of the introduction of the GRCM, costs that are higher than those incurred as a result of the application of other control measures.

Amendment 11

Proposal for a directive

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 1 — subparagraph 3

| Text proposed by the Commission | Amendment |
| --- | --- |
| The Member State shall attach to the request referred to in paragraph 4 the calculation of the VAT gap according to the method and figures available in the
  latest
  report on the VAT gap published by the Commission. | The Member State shall attach to the request referred to in paragraph 4 the calculation of the VAT gap according to the method and figures available in the report on the VAT gap published by the Commission
  , as referred to in point (a) of the second subparagraph
  . |

Text proposed by the Commission

Amendment

The Member State shall attach to the request referred to in paragraph 4 the calculation of the VAT gap according to the method and figures available in the
  latest
  report on the VAT gap published by the Commission.

The Member State shall attach to the request referred to in paragraph 4 the calculation of the VAT gap according to the method and figures available in the report on the VAT gap published by the Commission
  , as referred to in point (a) of the second subparagraph
  .

Amendment 12

Proposal for a directive

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| 2.
     
  Until 30 June 2022, a Member State may provide that the person liable for payment of VAT is the taxable person to whom supplies of goods and services are made above a threshold of EUR 10 000 per invoice where this Member State: | deleted |
| (a) | has a common border with a Member State that is authorised to apply the GRCM; |

Text proposed by the Commission

Amendment

2.
     
  Until 30 June 2022, a Member State may provide that the person liable for payment of VAT is the taxable person to whom supplies of goods and services are made above a threshold of EUR 10 000 per invoice where this Member State:

deleted

deleted

(a)

(a)

has a common border with a Member State that is authorised to apply the GRCM;

has a common border with a Member State that is authorised to apply the GRCM;

| (b) | establishes that a serious risk of shift of fraud towards its territory exists because of the authorisation of the GRCM to that Member State; |
| --- | --- |

(b)

(b)

establishes that a serious risk of shift of fraud towards its territory exists because of the authorisation of the GRCM to that Member State;

establishes that a serious risk of shift of fraud towards its territory exists because of the authorisation of the GRCM to that Member State;

| (c) | establishes that other control measures are not sufficient to combat fraud on its territory. |
| --- | --- |

(c)

(c)

establishes that other control measures are not sufficient to combat fraud on its territory.

establishes that other control measures are not sufficient to combat fraud on its territory.

Amendment 13

Amendment 13

Proposal for a directive

Proposal for a directive

Article 1 — paragraph 1

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 3

| Text proposed by the Commission | Amendment |
| --- | --- |
| 3.   Member States that apply the GRCM shall establish appropriate and effective electronic reporting obligations on all taxable persons and, in particular, on taxable persons who supply or receive the goods or services to which this mechanism applies. | 3.   Member States that apply the GRCM shall establish appropriate and effective electronic reporting obligations on all taxable persons and, in particular, on taxable persons who supply or receive the goods or services to which this mechanism applies
  to ensure the effective functioning and monitoring of the application of the GRCM
  . |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

3.   Member States that apply the GRCM shall establish appropriate and effective electronic reporting obligations on all taxable persons and, in particular, on taxable persons who supply or receive the goods or services to which this mechanism applies.

3.   Member States that apply the GRCM shall establish appropriate and effective electronic reporting obligations on all taxable persons and, in particular, on taxable persons who supply or receive the goods or services to which this mechanism applies
  to ensure the effective functioning and monitoring of the application of the GRCM
  .

Amendment 14

Amendment 14

Proposal for a directive

Proposal for a directive

Article 1 — paragraph 1

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 4 — subparagraph 1 — point a

| Text proposed by the Commission | Amendment |
| --- | --- |
| (a) | a detailed justification that the conditions referred to in paragraph 1
  or 2
  are fulfilled; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(a)

a detailed justification that the conditions referred to in paragraph 1
  or 2
  are fulfilled;

or 2

| (a) | a detailed justification that the conditions referred to in paragraph 1 are fulfilled;
  and |
| --- | --- |

(a)

a detailed justification that the conditions referred to in paragraph 1 are fulfilled;
  and

and

Amendment 15

Amendment 15

Proposal for a directive

Proposal for a directive

Article 1 — paragraph 1

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 4 — subparagraph 1 — point b

| Text proposed by the Commission | Amendment |
| --- | --- |
| (b) | the starting date of the application of the GRCM and the period to be covered by it; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(b)

the starting date of the application of the GRCM and the period to be covered by it;

| (b) | the starting date of the application of the GRCM and the period to be covered by it;
  and |
| --- | --- |

(b)

the starting date of the application of the GRCM and the period to be covered by it;
  and

and

Amendment 16

Amendment 16

Proposal for a directive

Proposal for a directive

Article 1 — paragraph 1

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 4 — subparagraph 1 — point c

| Text proposed by the Commission | Amendment |
| --- | --- |
| (c) | actions to be taken to inform taxable persons of the introduction of the application of the GRCM; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(c)

actions to be taken to inform taxable persons of the introduction of the application of the GRCM;

| (c) | actions to be taken to inform taxable persons of the introduction of the application of the GRCM;
  and |
| --- | --- |

(c)

actions to be taken to inform taxable persons of the introduction of the application of the GRCM;
  and

and

Amendment 17

Amendment 17

Proposal for a directive

Proposal for a directive

Article 1 — paragraph 1

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 4 — subparagraph 1 — point d

| Text proposed by the Commission | Amendment |
| --- | --- |
| (d) | a detailed description of the accompanying measures referred to in paragraph
  3
  . |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(d)

a detailed description of the accompanying measures referred to in paragraph
  3
  .

3

| (d) | a detailed description of the accompanying measures referred to in paragraph
  2
  . |
| --- | --- |

(d)

a detailed description of the accompanying measures referred to in paragraph
  2
  .

2

Amendment 18

Amendment 18

Proposal for a directive

Proposal for a directive

Article 1 — paragraph 1

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 7 — subparagraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| Member States applying the GRCM shall submit an interim report to the Commission no later than
  two years
  after the start of application of the GRCM. This report shall provide a detailed assessment of the effectiveness of the GRCM. | Member States applying the GRCM shall submit in electronic format to all Member States: |
| | (a) | the names of those persons who, in the twelve months preceding the date of application of the GRCM, have been subject to proceedings, whether criminal or administrative, for VAT fraud; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Member States applying the GRCM shall submit an interim report to the Commission no later than
  two years
  after the start of application of the GRCM. This report shall provide a detailed assessment of the effectiveness of the GRCM.

two years

Member States applying the GRCM shall submit in electronic format to all Member States:

Member States applying the GRCM shall submit in electronic format to all Member States:

(a)

(a)

the names of those persons who, in the twelve months preceding the date of application of the GRCM, have been subject to proceedings, whether criminal or administrative, for VAT fraud;

the names of those persons who, in the twelve months preceding the date of application of the GRCM, have been subject to proceedings, whether criminal or administrative, for VAT fraud;

| (b) | the names of those persons, including in the case of legal persons the names of their directors, whose VAT registration in their Member State was terminated upon the introduction of the GRCM; and |
| --- | --- |

(b)

(b)

the names of those persons, including in the case of legal persons the names of their directors, whose VAT registration in their Member State was terminated upon the introduction of the GRCM; and

the names of those persons, including in the case of legal persons the names of their directors, whose VAT registration in their Member State was terminated upon the introduction of the GRCM; and

| (c) | the names of those persons, including in the case of legal persons the names of their directors, who have failed to submit a VAT return for two consecutive tax periods after the introduction of the GRCM. |
| --- | --- |

(c)

(c)

the names of those persons, including in the case of legal persons the names of their directors, who have failed to submit a VAT return for two consecutive tax periods after the introduction of the GRCM.

the names of those persons, including in the case of legal persons the names of their directors, who have failed to submit a VAT return for two consecutive tax periods after the introduction of the GRCM.

The information referred to in points (a) and (b) shall be submitted no later than three months after the introduction of GRCM and shall be updated every three months thereafter. The information referred to in point (c) shall be submitted no later than nine months from the introduction of GRCM and shall be updated every three months thereafter.

The information referred to in points (a) and (b) shall be submitted no later than three months after the introduction of GRCM and shall be updated every three months thereafter. The information referred to in point (c) shall be submitted no later than nine months from the introduction of GRCM and shall be updated every three months thereafter.

Member States applying the GRCM shall submit an interim report to the Commission no later than
  one year
  after the start of application of the GRCM. This report shall provide a detailed assessment of the effectiveness of the GRCM.

one year

Amendment 19

Amendment 19

Proposal for a directive

Proposal for a directive

Article 1 — paragraph 1

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 8 — subparagraph 1

| Text proposed by the Commission | Amendment |
| --- | --- |
| Member States not applying the mechanism shall submit an interim report to the Commission as regards the impact in its territory of other Member States applying the GRCM
  no later than 30 June 2019, insofar
  the GRCM
  will have been
  applied for
  at least
  one year in one Member State
  by that date
  . | Member States not applying the mechanism shall submit an interim report to the Commission as regards the impact in its territory of other Member States applying the GRCM
  . Such report shall be submitted to the Commission within three months of
  the GRCM
  being
  applied for one year in one Member State. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

Member States not applying the mechanism shall submit an interim report to the Commission as regards the impact in its territory of other Member States applying the GRCM
  no later than 30 June 2019, insofar
  the GRCM
  will have been
  applied for
  at least
  one year in one Member State
  by that date
  .

no later than 30 June 2019, insofar

will have been

at least

by that date

Member States not applying the mechanism shall submit an interim report to the Commission as regards the impact in its territory of other Member States applying the GRCM
  . Such report shall be submitted to the Commission within three months of
  the GRCM
  being
  applied for one year in one Member State.

. Such report shall be submitted to the Commission within three months of

being

Amendment 20

Amendment 20

Proposal for a directive

Proposal for a directive

Article 1 — paragraph 1

Article 1 — paragraph 1

Directive 2006/112/EC

Article 199c — paragraph 10 — point a

| Text proposed by the Commission | Amendment |
| --- | --- |
| (a) | the evolution of the VAT gap; |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

(a)

(a)

the evolution of the VAT gap;

the evolution of the VAT gap;

deleted

deleted

Amendment 21

Amendment 21

Proposal for a directive

Proposal for a directive

Article 2 — paragraph 2

Article 2 — paragraph 2

| Text proposed by the Commission | Amendment |
| --- | --- |
| It shall apply until 30
  September
  2022. | It shall apply until 30
  June
  2022. |

Text proposed by the Commission

Text proposed by the Commission

Amendment

Amendment

It shall apply until 30
  September
  2022.

September

It shall apply until 30
  June
  2022.

June

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