European Parliament legislative resolution on the proposal for a Council directive amending Directive 77/388/EEC as regards certain measures to simplify the procedure for charging value added tax and to assist in countering tax evasion and avoidance, and repealing certain Decisions granting derogations (COM(2005)0089 — C6-0100/2005 — 2005/0019(CNS))
Date: 2006-07-06
Institutions: Committee on Economic and Monetary Affairs, European Parliament
Subjects: European Anti-fraud Office, VAT, fiscal policy, fraud, tax avoidance, tax collection, tax evasion

13.12.2006

EN

Official Journal of the European Union

C 303 E/747

TEXTS ADOPTED

Thursday, 6 July 2006

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 tax
and 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
substantially;

to consult Parliament again if

it

intends to amend the Commission proposal

5.

Instructs its President to forward its position to the Council and Commission.

TEXT PROPOSED
BY THE COMMISSION

AMENDMENTS
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 have
committed themselves to do pursuant to Article 280 of the
Treaty, Member States should cooperate closely with the
European Anti-Fraud Office (OLAF).

Amendment 2

Recital 9a (new)

This Directive should not encroach on the power of

(9a)
the Member States to levy taxes.

(1) Not yet published in the OJ.

C 303 E/748

EN

Official Journal of the European Union

13.12.2006

Thursday, 6 July 2006

TEXT PROPOSED
BY THE COMMISSION

AMENDMENTS
BY PARLIAMENT

Amendment 3

Recital 9b (new)

In order to counter tax evasion and avoidance effec-
(9b)
tively,
the streamlining of derogations should be only a
limited component of a comprehensive programme to reform
the Community's value added tax regime, and, thus, further
inter
reforms of the regime should be undertaken, aimed,
alia, at combating tax fraud, with a view to modernising and
simplifying, for example, financial services, e-services, double
taxation 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 effectiveness
of 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:

deleted

Where a Member State exercises the option provided for
in the second subparagraph,
it shall ensure that the
application of this option creates neither unjustifiable
taxable
benefit nor unjustified
persons.

disadvantage

for

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:

deleted

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. They
shall ensure that there is no unjustifiable benefit or
unjustified disadvantage conferred.

13.12.2006

EN

Official Journal of the European Union

C 303 E/749

TEXT PROPOSED
BY THE COMMISSION

Thursday, 6 July 2006

AMENDMENTS
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,
the enterprise
providing the service is liable to pay tax, must be clearly
and indisputably recognisable to, and ascertainable by,
enterprises.

to date,

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 shall
call upon their competent authorities to cooperate closely
with the OLAF where fraud is suspected. The Commis-
sion shall report to the European Parliament on progress
in 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
comparative
synopsis, assessing national thinking on the subject and
specifying the many and varied consequences of chan-
ging the system to the reverse-charge model and the
advantages and disadvantages for the Member States
and businesses operating in the Community.