Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulations (EU) No 1024/2012 and (EU) 2018/1724 as regards the use of the Internal Market Information System and the Single Digital Gateway for the purposes of certain requirements laid down by Directive (EU) .../... of the European Parliament and of the Council on European cross-border associations (COM(2023)516))
Date: 2023-09-05
Institutions: Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, European Commission
Subjects: EU national, administrative cooperation, administrative formalities, cross-frontier data flow, exchange of information, freedom to provide services, information system, service, single market, type of business

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   EUROPEAN COMMISSION  Brussels, 5.9.2023  COM(2023) 515 final 2023/0314 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulations (EU) No 1024/2012 and (EU) 2018/1724 as regards the use of the Internal Market Information System and the Single Digital Gateway for the purposes of certain requirements laid down by Directive (EU) .../... of the European Parliament and of the Council on European cross-border associations (COM(2023)516))    (Text with EEA relevance)  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

See Directive COM(2023)516. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

This proposal is based on Article 21(2) TFEU and Article 114 TFEU. 

This proposal amends Regulation (EU) No 1024/2012 of the European Parliament and of the 
Council  of  25  October  2012  on  administrative  cooperation  through  the  Internal  Market 
Information System and repealing Commission Decision 2008/49/EC (‘the IMI Regulation’)1 
which is based on Article 114 TFEU. 

This proposal also amends Regulation (EU) 2018/1724 of the European Parliament and of the 
Council  of  2  October  2018  establishing  a  single  digital  gateway  to  provide  access  to 
information,  to  procedures  and  to  assistance  and  problem-solving  services  and  amending 
Regulation (EU) No 1024/20122 which is based on Article 21(2) TFEU as well as on Article 
114(1) TFEU.  

As  regards  Article  114  TFEU,  it  lays  down  that  the  European  Parliament  and  the  Council 
adopt  the measures  for the approximation of the  provisions laid down by law, regulation  or 
administrative  action  in  Member  States  which  have  as  their  object  the  establishment  and 
functioning of the internal market. Since this proposal aims at amending Regulation (EU) No 
1024/2012  establishing  the  IMI  which  has  a  direct  effect  on  the  functioning  of  the  internal 
market  by  facilitating  the  cooperation  between  Member  States  and  addressing  differences 
between  Member  States’  provisions  which  obstruct  the  fundamental  freedoms,  Article  114 
TFEU is the appropriate legal basis.  

Since this proposal aims at clarifying and amending the scope of Regulation (EU) 2018/1724 
in order to provide better online access to information and procedures to citizens, businesses 
and legal persons other than businesses exercising or intending to exercise their rights derived 
from Union law in the field of the internal market, within the meaning of Article 26(2) TFEU, 
it will facilitate the exercise of the rights of Union citizens to move and reside freely within 
the territory of the Member States. Therefore, it should be based on Article 21(2) TFEU.  

• 

Subsidiarity (for non-exclusive competence)  

See Directive COM(2023)516. 

• 

Proportionality 

See Directive COM(2023)516. 

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Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on 
administrative cooperation through the Internal Market Information System and repealing Commission 
Decision 2008/49/EC (‘the IMI Regulation’) (OJ L 316, 14.11.2012, p. 1). 
Regulation  (EU)  2018/1724  of  the  European  Parliament  and  of  the  Council  of  2  October  2018 
establishing a single digital gateway to provide access to information, to procedures and to assistance 
and problem-solving services and amending Regulation (EU) No 1024/2012 (OJ L 295, 21.11.2018, p. 
1). 

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• 

Choice of the instrument 

Article  114  TFEU  lays  down  that  the  European  Parliament  and  the  Council  adopt  the 
measures  for  the  approximation  of  the  provisions  laid  down  by  law,  regulation  or 
administrative  action  in  Member  States  which  have  as  their  object  the  establishment  and 
functioning of the internal market. 

Given  that  this  proposal  would  amend  two  regulations,  a  regulation  is  the  appropriate  legal 
instrument. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

See Directive COM(2023)516. 

• 

Stakeholder consultations 

See Directive COM(2023)516. 

• 

Collection and use of expertise 

See Directive COM(2023) 516. 

• 

Impact assessment 

See Directive COM(2023)516. 

• 

Fundamental rights 

See Directive COM(2023)516. 

4. 

BUDGETARY IMPLICATIONS 

See Directive COM(2023)516. 

5. 

OTHER ELEMENTS 

See Directive COM(2023)516. 

• 

Explanatory documents (for directives) 

See Directive COM(2023)516. 

• 

Detailed explanation of the specific provisions of the proposal 

is  of 

technical  nature  and  accompanies 

the  Directive 
This  proposed  Regulation 
COM(2023)516.  It  amends  Regulation  (EU)  No  1024/2012  which  established  the  Internal 
Market  Information  System  (IMI)  in  order  to  ensure  that  Member  States’  competent 
authorities cooperate and exchange information through the IMI when they apply the national 
rules  transposed in  accordance with  the provisions of the Directive  COM(2023)516 (Article 
1). It also amends Regulation (EU) 2018/1724 which established the single digital gateway, to 
ensure  that  Member  States  give  online  access  to  information  about  European  cross-border 
associations  and  non-profit  associations  and  facilitate  the  exchange  of  evidence  between 
competent  authorities  in  the  procedures  laid  down  in  the  Directive  COM(2023)516  (Article 
2). By doing so, this amendment aims at ensuring the functioning of the internal market with 
regard to the provision of information, and procedures. 

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2023/0314 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulations (EU) No 1024/2012 and (EU) 2018/1724 as regards the use of the 
Internal Market Information System and the Single Digital Gateway for the purposes of 
certain requirements laid down by Directive (EU) .../... of the European Parliament and 
of the Council on European cross-border associations (COM(2023)516)) 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 21(2) and Article 114 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee3, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

Directive  (EU)  of  the  European  Parliament  and  of  the  Council  on  European  cross-
border  associations  (COM(2023)516)4 
the 
conditions  for  establishing  and  operating  “European  cross-border  associations” 
(ECBAs), with the aim of facilitating the effective exercise of freedom of movement 
of non-profit associations operating in the internal market. 

lays  down  measures  coordinating 

Pursuant to Article 30(2) of Directive COM(2023)516, the administrative cooperation 
and  the  exchange  of  information  between  the  competent  authorities  of  the  Member 
States  is  to  be  implemented  through  the  Internal  Market  Information  System  (‘IMI 
system’)  established  by  Regulation  (EU)  No  1024/2012  of  the  European  Parliament 
and  of  the  Council5.  For  that  reason,  the  necessary  administrative  cooperation 
procedures should be established in the IMI system. 

3 
4 

5 

Ref. of the opinion 
Directive of the European Parliament and of the Council of … on European Cross-Border Associations 
(OJ reference). 
Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on 
administrative cooperation through the Internal Market Information System and repealing Commission 
Decision 2008/49/EC (‘the IMI Regulation’) (OJ L 316, 14.11.2012, p. 1). 

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(3) 

(4) 

In  accordance  with  Articles  2  and  3  of  Regulation  (EU)  2018/1724  of  the  European 
Parliament  and  of  the  Council6,  the  single  digital  gateway  shall  give  access  to 
information, procedures as well as assistance and problem-solving services to citizens 
of  the  Union,  natural  persons  residing  in  a  Member  State  and  legal  persons  having 
their  registered  office  in  a  Member  State.  The  operative  part  and  Annex  I  of 
Regulation  (EU)  2018/1724  should  be  amended  to  ensure  that  the  scope  is  not 
understood as limited to citizens and businesses and concerns legal persons other than 
businesses, such as ECBAs. 
Regulation  (EU)  2018/1724  of  the  European  Parliament  and  the  Council7,  which 
established  the  single  digital  gateway,  provides  for  general  rules  for  the  online 
provision  of  information,  procedures  and  assistance  services  relevant  for  the 
functioning of the internal market. The procedures covered by this Regulation should 
comply with the requirements of Regulation (EU) 2018/1724 so as to ensure that any 
ECBA  can  benefit  from  fully  online  procedures  and  the  cross-border  automated 
exchange  of  evidence,  in  accordance  with  the  once-only  principle.  These  procedures 
encompass the application for registration of an ECBA and the procedure of transfer of 
registered office of an ECBA. 

(5) 

Regulations  (EU)  No  1024/2012  and  (EU)  2018/1724  should  therefore  be  amended 
accordingly,  

HAVE ADOPTED THIS REGULATION: 

Article 1 

Amendment to Regulation (EU) No 1024/2012 

In the Annex to Regulation (EU) No 1024/2012, the following new point (16) is added:  

‘16. Directive (EU) of the European Parliament and of the Council on European cross-border 
associations  (COM(2023)516)  *:  Article  19(2),  Article  19(4),  Article  23(5),  Article  23(6), 
Article 23(7), Article 24(3), Article 25(6), Article 27.’ 

____________________ 

*(OJ reference). 

Article 2 

Regulation (EU) 2018/1724 is amended as follows: 

Amendments to Regulation (EU) 2018/1724 

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Regulation  (EU)  2018/1724  of  the  European  Parliament  and  of  the  Council  of  2  October  2018 
establishing a single digital gateway to provide access to information, to  procedures and to assistance 
and problem-solving services and amending Regulation (EU) No 1024/2012 (OJ L 295, 21.11.2018, p. 
1). 
Regulation  (EU)  2018/1724  of  the  European  Parliament  and  of  the  Council  of  2  October  2018 
establishing a single digital gateway to provide access to information, to procedures and to assistance 
and problem-solving services and amending Regulation (EU) No 1024/2012 (OJ L 295, 21.11.2018, p. 
1). 

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(1) 

in Article 1(1), point (a) is replaced by the following: 

‘(a) the establishment and operation of a single digital gateway to provide citizens, businesses 
and  legal  persons  other  than  businesses  with  easy  access  to  high  quality  information,  to 
efficient  procedures  and  to  effective  assistance  and  problem-solving  services  with  regard  to 
Union  and  national  rules  applicable  to  citizens,  businesses  and  legal  persons  other  than 
businesses exercising or intending to exercise their rights derived from Union law in the field 
of the internal market, within the meaning of Article 26(2) TFEU;’  

(2) 

in Article 1(1), point (b) is replaced by the following: 

‘(b)  the  use  of  procedures  by  cross-border  users  and  the  implementation  of  the  ‘once-only’ 
principle  in  connection  with  the  procedures  listed  in  Annex  II  to  this  Regulation  and  the 
procedures  provided  for  in  Directives  2005/36/EC,  2006/123/EC,  2014/24/EU,  2014/25/EU 
and …/…*;’ 

____________________ 

‘* Directive of the European Parliament and of the Council of …. On European cross-border 
associations (OJ reference).’ 

(3) 

in Article 2(2), point (c) is replaced by the following: 

‘(c) information on, and links to, the assistance and problem-solving services listed in Annex 
III  or  referred  to  in  Article  7  which  citizens,  businesses  and  legal  persons  other  than 
businesses  can  refer  to  if  they  have  questions  or  problems  related  to  the  rights,  obligations, 
rules or procedures referred to in points (a) and (b) of this paragraph.’ 

(4) 

in Article 14, paragraph 1 is replaced by the following:  

‘1. For the purpose of the exchange of evidence for the online procedures listed in Annex II to 
this  Regulation  and  the  procedures  provided  for  in  Directives  2005/36/EC,  2006/123/EC, 
2014/24/EU,  2014/25/EU  and  …/…/…,  a  technical  system  for  the  automated  exchange  of 
evidence  between  competent  authorities  in  different  Member  States  (‘the  technical  system’) 
shall be established by the Commission in cooperation with the Member States.’ 

(5) 

Annex I to Regulation (EU) 2018/1724 is amended as follows: 

(a) 

the title is replaced by the following:  

‘List  of  areas  of  information  relevant  for  citizens,  businesses  and  legal  persons  other  than 
businesses  having  their  registered  office  in  a  Member  State  exercising  their  internal  market 
rights referred to in point (a) of Article 2(2).’ 

(b) 

the following areas of information are added: 

‘Areas  of  information  related  to  legal  persons  other  than  businesses  having  their  registered 
office in a Member State: 

AA.  Starting,  running  1.  registering,  changing  the  legal  form  of  or  closing  a  legal  person 

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and  closing  a 
legal 
person  other  than  a 
business 

AB. Employees 

other than a business (registration procedures and legal forms) 

2.  moving  a  legal  person  other  than  a  business  to  another  Member 
State 

3.  intellectual  property  rights  (applying  for  a  patent,  registering  a 
trademark, a drawing or a design, getting a licence for reproduction) 

4.  fairness  and  transparency  in  commercial  practices,  including 
consumer rights and guarantees related to selling goods and services 

5.  offering  online  facilities  for  cross-border  payments  when  selling 
goods and services online 

6.  rights  and  obligations  arising  under  contract  law,  including  late 
payment interests 

7. insolvency proceedings and liquidation of legal persons other than 
businesses 

8. credit insurance 

9. mergers of, or selling of a legal person other than a business 

10. civil liability of directors of a legal person other than a business 

11. rules and obligations regarding the processing of personal data 

1.  terms  of  employment  stipulated  by  law  or  statutory  instrument 
(including  working  hours,  paid  leave,  holiday  entitlements,  rights 
and obligations regarding overtime work, health checks, termination 
of contracts, dismissals and redundancies) 

2. social security rights and obligations in the Union (registering as 
employer, registering employees, notifying the end of contract of an 
employee, paying social contributions, rights and obligations related 
to pensions) 

3.  employment  of  workers  in  other  Member  States  (posting  of 
residency 
workers, 
requirements for workers) 

to  provide  services, 

rules  on 

freedom 

4. equal treatment (rules prohibiting discrimination in the workplace, 
rules on equal pay for men and women and equal pay for employees 
on fixed-term or under permanent employment contracts) 

5. rules on staff representation 

AC. Taxes 

1.  VAT:  information  on  the  general  rules,  rates  and  exemptions, 
registering for and paying VAT, obtaining a refund 

2.  excise  duties:  information  on  the  general  rules,  rates  and 
exemptions,  registration  for  excise  tax  purposes  and  payment  of 
excise tax, obtaining a refund 

3. customs duties and other taxes and duties collected on imports 

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4.  customs  procedures  for  imports  and  exports  under  the  Union 
Customs Code 

5. other taxes: payment, rates, tax returns 

AD. Goods  

1. obtaining CE marking  

2. product rules and requirements 

3.  identifying  applicable  standards,  technical  specifications  and 
getting products certified 

4. mutual recognition of products not subject to Union specifications 

5. requirements regarding classification, labelling and packaging for 
hazardous chemicals 

6.  distance/off-premises  selling: 
to 
customers  in  advance,  confirmation  of  the  contract  in  writing, 
withdrawal  from  a  contract,  delivering  of  the  goods,  other  specific 
obligations 

to  be  given 

information 

7.  defective  products:  consumer  rights  and  guarantees,  after-sale 
responsibilities, means of redress for an injured party 

8.  certification,  labels  (EMAS,  energy  labels,  Eco-design,  EU  eco-
label) 

9. recycling and waste management 

AE. Services  

1.  acquiring  licences,  authorisations  or  permits  with  a  view  to 
starting and operating a legal person other than a business 

2. notifying the authorities of cross-border activities 

3.  recognition  of  professional  qualifications,  including  vocational 
education and training 

AF.  Funding  a  legal 
person  other  than  a 
business 

1.  obtaining  access  to  finance  at  the  Union  level,  including  Union 
funding programmes and grants 

2. obtaining access to finance at national level 

3.  initiatives  addressed  to  legal  persons  other  than  a  business 
(exchanges, mentoring programmes, etc.) 

AG. Public contracts 

1. participating in public tenders: rules and procedures 

2. submitting a bid online in response to a public call for tender 

3. reporting irregularities in relation to the tender process 

AH. Health and safety 
at work 

1.  health  and  safety  obligations  in  relation  to  different  types  of 
activity, including risk prevention, information and training’ 

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Article 3 

Entry into force 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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