Procedure : 2018/0150(CNS)
Document stages in plenary
Document selected : A8-0283/2018

Texts tabled :

A8-0283/2018

Debates :

Votes :

PV 03/10/2018 - 9.2

Texts adopted :

P8_TA(2018)0367

REPORT     *
PDF 426kWORD 52k
10.9.2018
PE 625.397v02-00 A8-0283/2018

on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud

(COM(2018)0298 – C8‑0265/2018 – 2018/0150(CNS))

Committee on Economic and Monetary Affairs

Rapporteur: Sirpa Pietikäinen

(Simplified procedure – Rule 50(1) of the Rules of Procedure)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
 EXPLANATORY STATEMENT
 PROCEDURE – COMMITTEE RESPONSIBLE

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud

(COM(2018)0298 – C8‑0265/2018 – 2018/0150(CNS))

(Special legislative procedure – consultation)

The European Parliament,

–  having regard to the Commission proposal to the Council (COM(2018)0298),

–  having regard to Article 113 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C8‑0265/2018),

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

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0283/2018),

1.  Approves the Commission proposal;

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

3.  Asks the Council to consult Parliament again if it intends to substantially amend the text approved by Parliament;

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


EXPLANATORY STATEMENT

The purpose of this proposal is to prolong: 1) the possibility for Member States to apply the reverse charge mechanism to combat existing fraud in supplies of goods and services included in Article 199a of the VAT Directive and 2) the possibility to use the Quick Reaction Mechanism (QRM) to combat fraud.

Article 199a of the VAT Directive allows Member States to optionally use the reverse charge mechanism for payment of VAT on supplies of pre-defined goods and services, which are susceptible to fraud, and in particular, to Missing Trader Intra-Community (MTIC) fraud.

If a Member State would like to apply the reverse charge mechanism to other supplies than those listed in Article 199a of the VAT Directive, a derogation can be granted based on Article 395 of the VAT Directive in order to simplify the procedure for collecting VAT or to prevent certain forms of tax evasion and avoidance. However, the adoption of the derogation based on this article requires a proposal from the Commission and unanimous adoption by the Council, a process which takes up several months (up to a maximum of 8 months according to Article 395 of the VAT Directive). In cases whereby a Member State is suddenly confronted with massive fraud, the duration of the procedure for obtaining a derogation based on Article 395 could result in important losses of VAT receipts. The QRM included in Article 199b of the VAT Directive contains a faster procedure for allowing Member States, under certain strict conditions, to introduce the reverse charge mechanism, thereby providing Member States with a more adequate and effective response to sudden and massive fraud.

The purpose of the measures foreseen in Articles 199a and 199b is to allow Member States to quickly tackle problems of the MTIC fraud: Article 199a by an option of applying the reverse charge mechanism for listed supplies and Article 199b by offering a faster procedure for the introduction of the reverse charge mechanism in case of sudden and massive fraud. Both Articles expire on 31 December 2018.

It appears from the above that the measures included in Articles 199a and 199b of the VAT Directive have been useful as temporary and targeted measures. Their expiration on 31 December 2018 would deprive Member States of an efficient tool to fight fraud.

It is therefore appropriate to prolong the measures included in Articles 199a and 199b until 30 June 2022, the date on which the definitive regime for intra-Union B2B supplies of goods should enter into force.

The proposal will have no negative implications for the Union's budget.


PROCEDURE – COMMITTEE RESPONSIBLE

Title

Common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud

References

COM(2018)0298 – C8-0265/2018 – 2018/0150(CNS)

Date of consulting Parliament

11.6.2018

 

 

 

Committee responsible

       Date announced in plenary

ECON

14.6.2018

 

 

 

Rapporteurs

       Date appointed

Sirpa Pietikäinen

20.6.2018

 

 

 

Simplified procedure - date of decision

3.9.2018

Discussed in committee

3.9.2018

 

 

 

Date adopted

7.9.2018

 

 

 

Date tabled

10.9.2018

Last updated: 19 September 2018Legal notice