TEXTS ADOPTED
P6_TA(2006)0303
Simplification of VAT charging to counter tax evasion and avoidance *
European Parliament legislative resolution on the proposal for a Council directive amending Direc-
tive 77/388/EEC as regards certain measures to simplify the procedure for charging value added taxand to assist in countering tax evasion and avoidance, and repealing certain Decisions granting dero-
gations (COM(2005)0089 —C6-0100/2005 —2005/0019(CNS))
(Consultation procedure)
The European Parliament,
—having regard to the Commission proposal to the Council (COM(2005)0089) (
1),
—having regard to Article 93 of the EC Treaty, pursuant to which the Council consulted Parliament
(C6-0100/2005),
—having regard to Rule 51 of its Rules of Procedure,
—having regard to the report of the Committee on Economic and Monetary Affairs and the opinion of the
Committee on Budgetary Control (A6-0209/2006),
1. Approves the Commission proposal as amended;
2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;
3. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;4. Asks the Council to consult Parliament again if it intends to amend the Commission proposal
substantially;
5. Instructs its President to forward its position to the Council and Commission.
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
Amendment 1
Recital 1a (new)
(1a) To protect the Community against damage to its
financial interests in relation to value added tax, and in par-
ticular against losses resulting from fraudulent or other
illegal cross-border activities, as the Member States havecommitted themselves to do pursuant to Article 280 of theTreaty, Member States should cooperate closely with theEuropean Anti-Fraud Office (OLAF).
Amendment 2
Recital 9a (new)
(9a) This Directive should not encroach on the power of
the Member States to levy taxes.13.12.2006 C 303 E/747 Official Journal of the European Union
Thursday, 6 July 2006EN
(1) Not yet published in the OJ.
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
Amendment 3
Recital 9b (new)
(9b) In order to counter tax evasion and avoidance effec-
tively, the streamlining of derogations should be only alimited component of a comprehensive programme to reform
the Community's value added tax regime, and, thus, further
reforms of the regime should be undertaken, aimed, interalia, at combating tax fraud, with a view to modernising andsimplifying, for example, financial services, e-services, doubletaxation situations, and public services.
Amendment 4
Recital 9c (new)
(9c) The criteria for consideration in any change in the
system for levying value added tax should be the effectivenessof tax collection, equality in tax treatment, and practicability
for businesses.
Amendment 5
Article 1, point 1
Article 4, paragraph 4 (Directive 77/388/EEC)
(1) In Article 4(4), the following subparagraph is added:
Where a Member State exercises the option provided for
in the second subparagraph, it shall ensure that theapplication of this option creates neither unjustifiablebenefit nor unjustified disadvantage for taxablepersons.deleted
Amendment 6
Article 1, point 2
Article 5, paragraph 8, second sentence (Directive 77/388/EEC)
(2) In Article 5(8) the second sentence is replaced by the
following:
Where appropriate, Member States may, in cases where
the recipient is not wholly liable to tax, take the neces-sary measures to prevent distortion of competition. Theyshall ensure that there is no unjustifiable benefit orunjustified disadvantage conferred.deleted13.12.2006 C 303 E/748 Official Journal of the European Union
Thursday, 6 July 2006EN
TEXT PROPOSED
BY THE COMMISSIONAMENDMENTS
BY PARLIAMENT
Amendment 7
Article 1, point 7a (new)
Article 21, paragraph 2, point ca (new) (Directive 77/388/EEC)
(7a) In Article 21(2), in the version set out in Article 28g,
the following point (ca) shall be added:
(ca) The distinction between those services in respect of
which the taxable recipient is liable to pay tax and other
services in respect of which, to date, the enterpriseproviding the service is liable to pay tax, must be clearlyand indisputably recognisable to, and ascertainable by,enterprises.
Amendment 8
Article 1, point 7b (new)
Article 30a (new) (Directive 77/388/EEC)
(7b) The following Article shall be inserted:
Article 30a
In order to counter cross-border value added tax fraud,
affecting the Community's financial interests, and in
particular so-called carousel fraud, Member States shallcall upon their competent authorities to cooperate closelywith the OLAF where fraud is suspected. The Commis-sion shall report to the European Parliament on progressin this area within the framework of its annual report in
accordance with Article 280(5) of the Treaty.
Amendment 9
Article 1, point 7c (new)
Article 34a (new) (Directive 77/388/EEC)
(7c) The following Article shall be inserted:
Article 34a
To determine the best long-term value added tax collec-
tion arrangements for the European Union, the Commis-sion shall draw up a comprehensive comparativesynopsis, assessing national thinking on the subject andspecifying the many and varied consequences of chan-
ging the system to the reverse-charge model and the
advantages and disadvantages for the Member Statesand businesses operating in the Community.13.12.2006 C 303 E/749 Official Journal of the European Union
Thursday, 6 July 2006EN