REPORT on the amended proposal for a Council regulation amending Regulation (EU) No 904/2010 as regards measures to strengthen administrative cooperation in the field of value-added tax

22.6.2018 - (COM(2017)0706 – C8‑0441/2017 – 2017/0248(CNS)) - *

Committee on Economic and Monetary Affairs
Rapporteur: Roberts Zīle

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the amended proposal for a Council regulation amending Regulation (EU) No 904/2010 as regards measures to strengthen administrative cooperation in the field of value-added tax

(COM(2017)0706 – C8‑0441/2017 – 2017/0248(CNS))

(Special legislative procedure – consultation)

The European Parliament,

–  having regard to the Commission proposal to the Council (COM(2017)0706),

–  having regard to Article 113 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C8‑0441/2017),

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

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0215/2018),

1.  Approves the Commission proposal as amended;

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;

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 substantially amend the Commission proposal;

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

Amendment  1 Proposal for a regulation Recital 1 a (new)
Text proposed by the Commission	Amendment
	(1a)  VAT fraud is often linked with organised crime and a very small number of those organised networks can be responsible for billions of euro in cross-border VAT fraud, affecting not only revenue collection in Member States but also having a negative impact on the Union’s own resources. Therefore, Member States have a shared responsibility for the protection of the VAT revenue of all Member States.
Amendment    2 Proposal for a regulation Recital 2
Text proposed by the Commission	Amendment
(2)  Carrying out an administrative enquiry is often necessary to combat VAT fraud in particular when the taxable person is not established in the Member States where the tax is due. To ensure the proper enforcement of VAT and to avoid duplication of work and administrative burden of tax authorities and business, where at least two Member States consider that an administrative enquiry into the amounts declared by a taxable person non-established on their territory but taxable therein, is necessary, the Member State where the taxable person is established should undertake the enquiry and the requiring Member States should assist the Member State of establishment by taking part actively in the enquiry.	(2)  An administrative enquiry is often necessary to combat VAT fraud, in particular when the taxable person is not established in the Member State where the tax is due. To ensure the proper enforcement of VAT, to avoid duplication of work and to reduce the administrative burden on tax authorities and businesses, an administrative enquiry needs to be carried out into the amounts declared by a taxable person who is not established on their territory but is taxable therein. The Member State where the taxable person is established must undertake the enquiry and the requiring Member State(s) must assist the Member State of establishment by actively taking part in the enquiry.
Amendment    3 Proposal for a regulation Recital 11
Text proposed by the Commission	Amendment
(11)  For the purpose of ensuring the effective and efficient monitoring of VAT on cross-border transactions, Regulation (EU) No 904/2010 provides for the presence of officials in administrative offices and during administrative enquiries in other Member States. In order to strengthen the capacity of tax authorities to check cross-border supplies, there should be joint audits enabling officials from two or more Member States to form a single audit team and actively take part in a joint administrative enquiry.	(11)  For the purpose of ensuring the effective and efficient monitoring of VAT on cross-border transactions, Regulation (EU) No 904/2010 provides for the presence of officials in administrative offices and during administrative enquiries in other Member States. In order to strengthen the capacity of tax authorities by providing them with enhanced technical and human resources to check cross-border supplies, there should be joint audits enabling officials from two or more Member States to form a single audit team and actively take part in a joint administrative enquiry, in a cooperative and productive spirit and on terms to be agreed by the Member States in order to detect and counter cross-border VAT fraud which is currently eroding the tax bases of Member States.
Amendment    4 Proposal for a regulation Recital 13
Text proposed by the Commission	Amendment
(13)  In order to combat the most serious cross-border fraud schemes, it is necessary to clarify and strengthen the governance, tasks and functioning of Eurofisc. Eurofisc liaison officials should be able to access, exchange, process and analyse all necessary information swiftly and coordinate any follow-up actions. It is also necessary to strengthen the cooperation with other authorities involved in the fight against VAT fraud at Union level, in particular through the exchange of targeted information with Europol and the European Anti-Fraud Office. Therefore, Eurofisc liaison officials should be able to share, spontaneously or on foot of a request, information and intelligence with Europol and the European Anti-Fraud Office. This would enable Eurofisc liaison officials to receive data and intelligence held by Europol and the European Anti-Fraud Office in order to identify the real perpetrators of the VAT fraud activities.	(13)  In order to combat the most serious cross-border fraud schemes, it is necessary to clarify and strengthen the governance, tasks and functioning of Eurofisc. Eurofisc liaison officials should be able to access, exchange, process and analyse all necessary information swiftly and coordinate any follow-up actions. It is also necessary to strengthen the cooperation with other authorities involved in the fight against VAT fraud at Union level, in particular through the exchange of targeted information with Europol and the European Anti-Fraud Office. Therefore, Eurofisc liaison officials should share, spontaneously or on foot of a request, information and intelligence with Europol, the European Anti-Fraud Office, and, for participating Member States, the European Public Prosecutor’s Office, especially for suspicion of VAT fraud above a certain amount. This would enable Eurofisc liaison officials to receive data and intelligence held by Europol and the European Anti-Fraud Office in order to identify the real perpetrators of the VAT fraud activities.
Amendment    5 Proposal for a regulation Recital 15
Text proposed by the Commission	Amendment
(15)  Organising the forwarding of requests for VAT refunds — pursuant to Article 5 of Council Directive 2008/9/EC35 offers an opportunity to reduce the administrative burden for the competent authorities to recover unpaid VAT debts in the Member State of establishment.	(15)  Organising the forwarding of requests for VAT refunds — pursuant to Article 5 of Council Directive 2008/9/EC35 offers an opportunity to reduce the administrative burden for the competent authorities to recover unpaid tax liabilities in the Member State of establishment.
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35 Council Directive 2008/9/EC of 12 February 2008 laying down detailed rules for the refund of value added tax, provided for in Directive 2006/112/EC, to taxable persons not established in the Member State of refund but established in another Member State (OJ L 44, 20.2.2008, p. 23).	35 Council Directive 2008/9/EC of 12 February 2008 laying down detailed rules for the refund of value added tax, provided for in Directive 2006/112/EC, to taxable persons not established in the Member State of refund but established in another Member State (OJ L 44, 20.2.2008, p. 23).
Amendment    6 Proposal for a regulation Recital 16
Text proposed by the Commission	Amendment
(16)  To protect the financial interests of the Union against serious cross-border VAT fraud, the Member States participating in the European Public Prosecutor’s Office should communicate to that office, including via Eurofisc liaisons officials, information on the most serious VAT offences as referred to in Article 2(2) of Directive (EU) 2017/1371 of the European Parliament and of the Council36.	(16)  To protect the financial interests of the Union against serious cross-border VAT fraud, the Member States participating in the European Public Prosecutor’s Office should communicate to that office in a timely manner, including via Eurofisc liaisons officials, information on the most serious VAT offences as referred to in Article 2(2) of Directive (EU) 2017/1371 of the European Parliament and of the Council36.
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36 Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).	36 Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).
Amendment    7 Proposal for a regulation Recital 18
Text proposed by the Commission	Amendment
(18)  The Commission may have access to the information communicated or collected pursuant to Regulation (EU) No 904/2010 only in so far as it is necessary for care, maintenance and development of the electronic systems hosted by the Commission and used by the Member States for the purpose of this Regulation.	(18)  The Commission should have access to the information communicated or collected pursuant to Regulation (EU) No 904/2010 in so far as it is necessary for care, maintenance and development of the electronic systems hosted by the Commission and used by the Member States for the purpose of this Regulation, and to ensure the proper implementation of this Regulation. In addition, it should be possible for the Commission to conduct visits in Member States to evaluate how the administrative cooperation arrangements work.
Amendment    8 Proposal for a regulation Recital 19
Text proposed by the Commission	Amendment
(19)  For the purposes of this Regulation, it is appropriate to consider limitations on certain rights and obligations laid down by Regulation (EU) 2016/679 of the European Parliament and of the Council37 in order to safeguard the interests referred to in Article 23(1)(e) of that Regulation. Such limitations are necessary and proportionate in view of the potential loss of revenue for Member States and the crucial importance of making information available in order to combating fraud effectively.	(19)  For the purposes of this Regulation, it is appropriate to consider limitations on certain rights and obligations laid down by Regulation (EU) 2016/679 of the European Parliament and of the Council37 in order to safeguard the interests referred to in Article 23(1)(e) of that Regulation. Such limitations are necessary and proportionate in view of the potential loss of revenue for Member States and the crucial importance of making information available in order to combating fraud effectively. Such limitations, however, should not go beyond what is strictly necessary to achieve that objective and must meet the high standards required by Article 52(1) of the Charter of Fundamental Rights of the European Union. In addition, any future implementing acts to this Regulation should comply with the data protection requirements laid down in the Regulation (EU) 2016/679 and Regulation (EC) No 45/2001 of the European Parliament and of the Council.37a
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37 Regulation (EU) 2016/679 of the European Parliament and of the Council on the protection of natural persons with regard to the processing of personal data and on the free movement of such data (OJ L 119, 4.5.2016, p. 1).	37 Regulation (EU) 2016/679 of the European Parliament and of the Council on the protection of natural persons with regard to the processing of personal data and on the free movement of such data (OJ L 119, 4.5.2016, p. 1).
	37aRegulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data (OJ L 8, 12.1.2001, p. 1).
Amendment    9 Proposal for a regulation Recital 20 a (new)
Text proposed by the Commission	Amendment
	(20a)  Given the low number of Member States publishing estimates of VAT losses due to intra-community fraud, having comparable data on intra-Community VAT fraud would contribute to better targeted cooperation between Member States. Therefore, the Commission, together with the Member States, should develop a common statistical approach to quantify and analyse VAT fraud.
Amendment    10 Proposal for a regulation Article 1 – paragraph 1 – point 1 – point b Regulation (EU) No 904/2010 Article 7 – paragraph 4
Text proposed by the Commission Amendment 4.  The request referred to in paragraph 1 may contain a reasoned request for a specific administrative enquiry. The requested authority shall undertake the administrative enquiry in coordination with the requesting authority. The tools and procedures referred to in Articles 28 to 30 of this Regulation may be used. If the requested authority takes the view that no administrative enquiry is necessary, it shall immediately inform the requesting authority of the reasons thereof. 4.  Where the competent authority of a Member State considers that an administrative enquiry is required, it shall submit a reasoned request. The requested authority shall not refuse to undertake that enquiry. If the information is already available, the requested authority shall supply it to the requesting authorities without delay. If the requesting Member State is not satisfied with the information received, it shall inform the requested Member State that it is proceed with the administrative inquiry. Notwithstanding the first subparagraph, an enquiry into the amounts declared by a taxable person established in the Member State of the requested authority and which are taxable in the Member State of the requesting authority, may be refused solely on any of the following grounds: That administrative enquiry shall be carried out in accordance with the rules in force in the requested Member State by officials of the requesting and requested authorities. The officials of the requesting authority shall exercise the same powers of inspection as those conferred on officials of the requested authority. The officials of the requesting authority shall, in particular, have access to the same premises and documents as the officials of the requested authority for the sole purpose of carrying out the administrative enquiry. (a)  on the grounds provided for in Article 54(1), assessed by the requested authority in conformity with a statement of best practices concerning the interaction of this paragraph and Article 54(1), to be adopted in accordance with the procedure provided for in Article 58(2);   (b)  on the grounds provided for in paragraphs 2, 3 and 4 of Article 54;   (c)  on the grounds that the requested authority had already supplied the requesting authority with information on the same taxable person as a result of an administrative enquiry held less than two years previously.   Where the requested authority refuses an administrative enquiry referred to in the second subparagraph on the grounds set out in points (a) or (b), it shall nevertheless provide to the requesting authority the dates and values of any relevant supplies made by the taxable person in the Member State of the requesting authority over the previous two years.   Where the competent authorities of at least two Member States consider that an administrative enquiry is required, the requested authority shall not refuse to undertake that enquiry. Member States shall ensure that arrangements are put in place between those requesting authorities and the requested authority whereby officials authorised by the requesting authorities shall take part in the administrative enquiry carried out in the territory of the requested authority with a view to collecting the information referred to in the second subparagraph. Such administrative enquiry shall be carried out jointly by the officials of the requesting and requested authorities. The officials of the requesting authorities shall exercise the same powers of inspection as those conferred on officials of the requested authority. The officials of the requesting authorities shall have access to the same premises and documents as the officials of the requested authority for the sole purpose of carrying out the administrative enquiry.
Justification
The EU must establish effective inspection mechanisms. It is therefore important to allow a single Member State to ask for an administrative enquiry to be carried out, and to participate in that enquiry. Officials in the requesting State are often more familiar with the file, and it is therefore crucial that they are able to play an active part in the inspection, while upholding the rules in force under the law of the country concerned.
Amendment    11 Proposal for a regulation Article 1 – paragraph 1 – point 1 – point b Regulation (EU) No 904/2010 Article 7 – paragraph 4 – subparagraph 1
Text proposed by the Commission Amendment The request referred to in paragraph 1 may contain a reasoned request for a specific administrative enquiry. The requested authority shall undertake the administrative enquiry in coordination with the requesting authority. The tools and procedures referred to in Articles 28 to 30 of this Regulation may be used. If the requested authority takes the view that no administrative enquiry is necessary, it shall immediately inform the requesting authority of the reasons thereof. Where the competent authority of a Member State considers that an administrative enquiry is required, it shall submit a reasoned request. The requested authority shall not refuse to undertake that enquiry and, if the information is already available, the requested authority shall supply it to the requesting authorities without delay. If the requesting Member State is not satisfied with the information received, it shall inform the requested Member State that it is to press ahead with the administrative inquiry. That administrative enquiry shall be carried out in accordance with the rules in force in the requested Member State by officials of the requesting and requested authorities. The officials of the requesting authority shall exercise the same powers of inspection as those conferred on officials of the requested authority. The officials of the requesting authority shall, in particular, have access to the same premises and documents as the officials of the requested authority for the sole purpose of carrying out the administrative enquiry.
Justification
With the rollout of the mini-one-stop-shop, a significant proportion of States’ VAT will be collected in other Member States. It is therefore vital for the EU to have effective inspection systems. It is therefore proposed that a single Member State should be allowed to ask for an administrative enquiry to be carried out, and to participate in that enquiry. Officials in the requesting State are more familiar with the file, and it is therefore crucial that they are able to play an active part in the inspection, while upholding the rules in force under law of the country concerned.
Amendment    12 Proposal for a regulation Article 1 – paragraph 1 – point 1 – point b Regulation (EU) No 904/2010 Article 7 – paragraph 4 – subparagraph 4
Text proposed by the Commission Amendment Where the competent authorities of at least two Member States consider that an administrative enquiry is required, the requested authority shall not refuse to undertake that enquiry. Member States shall ensure that arrangements are put in place between those requesting authorities and the requested authority whereby officials authorised by the requesting authorities shall take part in the administrative enquiry carried out in the territory of the requested authority with a view to collecting the information referred to in the second subparagraph. Such administrative enquiry shall be carried out jointly by the officials of the requesting and requested authorities. The officials of the requesting authorities shall exercise the same powers of inspection as those conferred on officials of the requested authority. The officials of the requesting authorities shall have access to the same premises and documents as the officials of the requested authority for the sole purpose of carrying out the administrative enquiry. Where a competent authority of a Member State considers that an administrative enquiry is required, it shall submit a duly justified request. The requested authority shall not refuse to undertake the enquiry concerned, and if the information is already available, the requested authority shall supply it to the requesting authority prior to receipt of any request. Member States shall ensure that arrangements are put in place between the requesting authority and the requested authority whereby officials authorised by the requesting authority shall take part in the administrative enquiry carried out in the territory of the requested authority with a view to collecting the information referred to in the second subparagraph. Such administrative enquiry shall be carried out jointly by the officials of the requesting and requested authorities in a cooperative and productive spirit. The officials of the requesting authority shall have access to the same information, documents and premises and shall, insofar as permitted under the law of the requested Member State, be able to directly question individuals in order to detect and counter cross-border VAT fraud which is currently eroding national tax bases.
Amendment    13 Proposal for a regulation Article 1 – paragraph 1 – point 1 a (new) Regulation (EU) No 904/2010 Article 12 a (new)
Text proposed by the Commission Amendment   (1a)  The following Article is inserted:   ‘Article 12a   All Member States shall implement a set of operational targets for reducing the percentage of late replies and improving the quality of requests for information and shall inform the Commission about those targets.’
Amendment    14 Proposal for a regulation Article 1 – paragraph 1 – point 2 Regulation (EU) No 904/2010 Article 13 – paragraph 3
Text proposed by the Commission Amendment 3.  The information shall be forwarded by means of standard forms or by other means which the respective competent authorities deem appropriate. The Commission shall adopt by means of implementing acts the standard forms. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 58(2); 3.  The information shall be forwarded using standard forms or by other means which the respective competent authorities deem appropriate. The Commission shall adopt the standard forms by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 58(2);
Amendment    15 Proposal for a regulation Article 1 – paragraph 1 – point 2 a (new) Regulation (EU) No 904/2010 Article 14 – paragraph 1 – subparagraph 2
Present text Amendment   (2a)  in Article 14(1) the second subparagraph is replaced by the following: ‘A Member State may abstain from taking part in the automatic exchange of information with respect to one or more categories where the collection of information for such exchange would require the imposition of new obligations on persons liable for VAT or would impose a disproportionate administrative burden on the Member State.’ ‘A Member State may abstain from taking part in the automatic exchange of information with respect to one or more categories where the collection of information for such exchange would require the imposition of disproportionate obligations on persons liable for VAT or would impose a disproportionate administrative burden on the Member State.’
Amendment    16 Proposal for a regulation Article 1 – paragraph 1 – point 3 – point a Regulation (EU) No 904/2010 Article 17 – paragraph 1 – point e
Text proposed by the Commission Amendment (e)  information as regards the status of a certified taxable person pursuant to Article 13a of Directive 2006/112/EC, as well as the date on which that status was granted, refused and withdrawn. (e)  information regarding the status of a certified taxable person pursuant to Article 13a of Directive 2006/112/EC, as well as the date on which that status was granted, refused and withdrawn.
Amendment    17 Proposal for a regulation Article 1 – paragraph 1 – point 3 – point b Regulation (EU) No 904/2010 Article 17 – paragraph 1 – point f
Text proposed by the Commission Amendment ‘(f)  information which it collects pursuant to points (a) and (b) of Article 143(2) of Directive 2006/112/EC, as well as the country of origin, the country of destination, the commodity code, the currency, the total amount, the exchange rate, the prices of the individual items and the net weight.’; ‘(f)  information which it collects pursuant to points (a) and (b) of Article 143(2) of Directive 2006/112/EC, as well as the country of origin, the exporter’s identification data, the country of destination, the commodity code, the currency, the total amount, the exchange rate, the item price and the net weight.’;
Amendment    18 Proposal for a regulation Article 1 – paragraph 1 – point 3 – point e Regulation (EU) No 904/2010 Article 17 – paragraph 3
Text proposed by the Commission Amendment 3.  The Commission shall determine by means of implementing acts the exact categories of information referred to in point (f) of paragraph 1 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 58(2).; 3.  The Commission shall determine by means of implementing acts the specific categories to be comprised in the standard forms, templates and procedures for the provision of information referred to in point (f) of paragraph 1 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 58(2).
Amendment    19 Proposal for a regulation Article 1 – paragraph 1 – point 4 – point a Regulation (EU) No 904/2010 Article 21 – paragraph 1a
Text proposed by the Commission Amendment 1a.  Every Member State shall grant its officials who check the requirements provided for in Article 143(2) of Directive 2006/112/EC access to the information referred to in points (b) and (c) of Article(17)(1) of this Regulation for which automated access is granted by the other Member States.; 1a.  Every Member State shall grant its officials who check the requirements provided for in Article 143(2) of Directive 2006/112/EC access to the information referred to in points (b) and (c) of Article(17)(1) of this Regulation, including to the register of certified taxable persons, for which automated access is granted by the other Member States.;
Amendment    20 Proposal for a regulation Article 1 – paragraph 1 – point 4 – point b – point i Regulation (EU) No 904/2010 Article 21 – paragraph 2 – point e – point i
Text proposed by the Commission Amendment (i)  access is in connection with an investigation into suspected fraud or is to detect or identify perpetrators of fraud; (i)  access is in connection with an investigation into suspected fraud or is to detect or identify perpetrators of fraud and serious misconduct;
Amendment    21 Proposal for a regulation Article 1 – paragraph 1 – point 4 – point b – point i Regulation (EU) No 904/2010 Article 21 – paragraph 2 – point e – point ii
Text proposed by the Commission Amendment (ii)  access is through a Eurofisc liaison official, as referred to in Article 36(1), who holds a personal user identification for the electronic systems allowing access to this information.; (ii)  access is through a Eurofisc liaison official, as referred to in Article 36(1), who holds a personal user identification for the electronic systems allowing access to this information and the register of certified taxable persons.;
Amendment    22 Proposal for a regulation Article 1 – paragraph 1 – point 4 – point c Regulation (EU) No 904/2010 Article 21 – paragraph 2a – subparagraph 1 – introductory part
Text proposed by the Commission Amendment With respect to the information referred to in Article 17(1)(f), at least the following details shall be accessible: With respect to the information referred to in Article 17(1)(f), at least the following information shall be accessible:
Amendment    23 Proposal for a regulation Article 1 – paragraph 1 – point 4 – point c Regulation (EU) No 904/2010 Article 21 – paragraph 2a – subparagraph 1 – point a
Text proposed by the Commission Amendment (a)  the VAT identification numbers issued by the Member State receiving the information; (a)  the VAT identification numbers issued by the Member State receiving the information and the register of certified taxable persons;
Amendment    24 Proposal for a regulation Article 1 – paragraph 1 – point 4 – point c Regulation (EU) No 904/2010 Article 21 – paragraph 2a – subparagraph 1 – point c
Text proposed by the Commission Amendment (c)  the country of origin, the country of destination, the commodity code, the currency, the total amount, the exchange rate, the prices of the individual items and the net weight of the imported goods followed by an intra-Community supply of goods from each person referred to in point (b) to each person holding a VAT identification number referred to in point (a); (c)  the country of origin, the country of destination, the commodity code, the currency, the total amount, the exchange rate, the item price and the net weight of the imported goods followed by an intra-Community supply of goods from each person referred to in point (b) to each person holding a VAT identification number referred to in point (a);
Amendment    25 Proposal for a regulation Article 1 – paragraph 1 – point 4 – point c Regulation (EU) No 904/2010 Article 21 – paragraph 2a – subparagraph 1 – point d – introductory part
Text proposed by the Commission Amendment   the country of origin, the country of destination, the commodity code, the currency, the total amount, the exchange rate, the prices of the individual items and the net weight of the imported goods followed by an intra-Community supply of goods from each person referred to in point (b) to each person holding a VAT identification number issued by another Member State under the following conditions:   the country of origin, the country of destination, the commodity code, the currency, the total amount, the exchange rate, the item price and the net weight of the imported goods followed by an intra-Community supply of goods from each person referred to in point (b) to each person holding a VAT identification number issued by another Member State under the following conditions:
Amendment    26 Proposal for a regulation Article 1 – paragraph 1 – point 4 – point c Regulation (EU) No 904/2010 Article 21 – paragraph 2a – subparagraph 1 – point d – point i
Text proposed by the Commission Amendment (i)  access is in connection with an investigation into suspected fraud or is to detect or identify perpetrators of fraud; (i)  access is in connection with an investigation into suspected fraud or is to detect or identify perpetrators of fraud and serious misconduct;
Amendment    27 Proposal for a regulation Article 1 – paragraph 1 – point 5 Regulation (EU) No 904/2010 Article 21a – paragraph 2 – subparagraph 1 – point i
Text proposed by the Commission Amendment (i)  access is in connection with an investigation into suspected fraud or is to detect or identify perpetrators of fraud; (i)  access is in connection with an investigation into suspected fraud or is to detect or identify perpetrators of fraud and serious misconduct;
Amendment    28 Proposal for a regulation Article 1 – paragraph 1 – point 8 – point a Regulation (EU) No 904/2010 Article 28 – paragraph 2a
Text proposed by the Commission Amendment ‘2a.  By agreement between the requesting authority and the requested authority, and in accordance with the arrangements laid down by the latter, officials authorised by the requesting authority may, with a view to collecting and exchanging the information referred to in Article 1, take part in the administrative enquiries carried out in the territory of the requested Member State. Such administrative enquiries shall be carried out jointly by the officials of the requesting and requested authorities. The officials of the requesting authority shall exercise the same powers of inspection as those conferred on officials of the requested authority. The officials of the requesting authorities shall have access to the same premises and documents as the officials of the requested authority for the sole purpose of carrying out the administrative enquiry. By agreement between the requesting authority and the requested authority, and in accordance with the arrangements laid down by the requested authority, both authorities may draft a common audit report.’; ‘2a.  By agreement between the requesting authority and the requested authority, and in accordance with the arrangements laid down by the latter, officials authorised by the requesting authority may, with a view to collecting and exchanging the information referred to in Article 1, take part in the administrative enquiries carried out in the territory of the requested Member State. Such administrative enquiries shall be carried out jointly in a spirit of mutual trust and fruitful cooperation by the officials of the requesting and requested authorities, respecting the administrative practices of those authorities and the national law of the Member State with the aim of combating cross-border VAT fraud of the requested authority. The officials of the requesting authorities shall have access to the same premises and documents as the officials of the requested authority for the sole purpose of carrying out the administrative enquiry. By agreement between the requesting authority and the requested authority, and in accordance with the arrangements laid down by the requested authority, the participating authorities may draft a common audit report.’;
Amendment    29 Proposal for a regulation Article 1 – paragraph 1 – point 11 – point a Regulation (EU) No 904/2010 Article 33 – paragraph 1
Text proposed by the Commission Amendment 1.  In order to promote and facilitate multilateral cooperation in the fight against VAT fraud, this Chapter establishes a network for the swift exchange, processing and analysis of targeted information between Member States and for the coordination of any follow-up actions (‘Eurofisc’). 1.  In order to promote and facilitate multilateral cooperation in the fight against VAT fraud, this Chapter establishes a network for the swift exchange, processing and analysis of targeted information on cross-border fraud schemes between Member States and for the coordination of any follow-up actions (‘Eurofisc’).
Amendment    30 Proposal for a regulation Article 1 – paragraph 1 – point 11 – point b – point i Regulation (EU) No 904/2010 Article 33 – paragraph 2 – point b
Text proposed by the Commission Amendment (b)  carry out and coordinate the swift multilateral exchange and the joint processing and analysis of targeted information in the subject areas in which Eurofisc operates (‘Eurofisc working fields’); (b)  carry out and coordinate the swift multilateral exchange and the joint processing and analysis of targeted information on cross-border fraud schemes in the subject areas in which Eurofisc operates (‘Eurofisc working fields’);
Amendment    31 Proposal for a regulation Article 1 – paragraph 1 – point 11 – point b – point ii Regulation (EU) No 904/2010 Article 33 – paragraph 2 – point d
Text proposed by the Commission Amendment (d)  coordinate participating Member States’ administrative enquiries into the suspects and perpetrators of fraud identified by the Eurofisc liaison officials as referred to in Article 36(1). (d)  coordinate participating Member States’ administrative enquiries of fraud identified by the Eurofisc liaison officials as referred to in Article 36(1).
Amendment    32 Proposal for a regulation Article 1 – paragraph 1 – point 12 Regulation (EU) No 904/2010 Article 34 – paragraph 2
Text proposed by the Commission Amendment 2.  Member States having chosen to take part in a Eurofisc working field shall actively participate in the multilateral exchange and the joint processing and analysis of targeted information between all participating Member States and in the coordination of any follow-up actions. 2.  Member States having chosen to take part in a Eurofisc working field shall actively participate in the multilateral exchange and the joint processing and analysis of targeted information on cross-border fraud schemes between all participating Member States and in the coordination of any follow-up actions.
Amendment    33 Proposal for a regulation Article 1 – paragraph 1 – point 13 Regulation (EU) No 904/2010 Article 35 – paragraph 1
Text proposed by the Commission Amendment The Commission shall provide Eurofisc with technical and logistical support. The Commission shall not have access to the information referred to in Article 1, which may be exchanged over Eurofisc, except in the circumstances provided for in Article 55(2).’; The Commission shall provide Eurofisc with the necessary technical and logistical support. The Commission shall have access to the information referred to in Article 1, which may be exchanged over Eurofisc, for the circumstances provided for in Article 55(2).’;
Amendment    34 Proposal for a regulation Article 1 – paragraph 1 – point 14 – point c Regulation (EU) No 904/2010 Article 36 – paragraph 3
Text proposed by the Commission Amendment 3.  Eurofisc working field coordinators may forward, on their own initiative or on request, some of the collated and processed information to Europol and the European Anti-Fraud Office (‘OLAF’), as agreed by the working field participants. 3.  Eurofisc working field coordinators may, on their own initiative or on request, forward relevant information on the most serious cross-border VAT offences to Europol and the European Anti-Fraud Office (‘OLAF’), as agreed by the working field participants.
Amendment    35 Proposal for a regulation Article premier – paragraph 1 – point 14 – point c Regulation (EU) No 904/2010 Article 36 – paragraph 4
Text proposed by the Commission Amendment 4.  Eurofisc working field coordinators shall make the information received from Europol and OLAF available to the other participating Eurofisc liaison officials; this information shall be exchanged by electronic means. 4.  Eurofisc working field coordinators may ask Europol and OLAF for relevant information. Eurofisc working field coordinators shall make the information received from Europol and OLAF available to the other participating Eurofisc liaison officials; this information shall be exchanged by electronic means.
Justification
It is vital for there to be two-way information exchange between Eurofisc and Europol.
Amendment    36 Proposal for a regulation Article 1 – paragraph 1 – point 16 Regulation (EU) No 904/2010 Article 48 – paragraph 1 – subparagraph 2
Text proposed by the Commission Amendment Where the Member State of establishment becomes aware that a taxable person making a request for refund of VAT, in accordance with Article 5 of Directive 2008/9/EC, has undisputed VAT liabilities in that Member State of establishment, it may inform the Member State of refund of those liabilities so that the Member State of refund shall request the consent of the taxable person for the transfer of the VAT refund directly to the Member State of establishment in order to discharge the outstanding VAT liabilities. Where the taxable person consents to this transfer, the Member State of refund on behalf of the taxable person shall transfer this amount to the Member State of establishment, to the extent that it is required to discharge the outstanding VAT liability. The Member State of establishment shall inform the taxable person whether the amount transferred amounts to either a full or a partial discharge of the VAT liability within 15 days of the receipt of the transfer from the Member State of refund. Where the Member State of establishment becomes aware that a taxable person making a request for refund of VAT, in accordance with Article 5 of Directive 2008/9/EC, has undisputed VAT liabilities in that Member State of establishment, it shall inform the Member State of refund of those liabilities so that the Member State of refund requests the consent of the taxable person for the transfer of the VAT refund directly to the Member State of establishment in order to discharge the outstanding VAT liabilities. Where the taxable person consents to this transfer, the Member State of refund on behalf of the taxable person shall transfer this amount to the Member State of establishment, to the extent that it is required to discharge the outstanding VAT liability. The Member State of establishment shall inform the taxable person whether the amount transferred amounts to either a full or a partial discharge of the VAT liability within 10 working days of the receipt of the transfer from the Member State of refund.
Amendment    37 Proposal for a regulation Article 1 – paragraph 1 – point 18 Regulation (EU) No 904/2010 Article 49 – paragraph 2a – subparagraph 2
Text proposed by the Commission Amendment The Member States may communicate to the European Anti-fraud Office any available information about offences against the common VAT system to enable it to consider appropriate action in accordance with its mandate.’ Without prejudice to Article 36(3), the Member States may communicate to the European Anti-fraud Office any available information about offences against the common VAT system to enable it to consider appropriate action in accordance with its mandate.’
Amendment    38 Proposal for a regulation Article 1 – paragraph 1 – point 18 a (new) Regulation (EU) No 904/2010 Article 49 a (new)
Text proposed by the Commission Amendment   (18a)  The following Article is inserted:   “Article 49a   Member States and the Commission shall establish a common system of collecting statistics on intra-Community VAT fraud and shall publish national estimates of VAT losses resulting from that fraud, as well as estimates for the Union as a whole. The Commission shall adopt by means of implementing acts the practical arrangements for such statistical system. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 58(2).’
Amendment    39 Proposal for a regulation Article 1 – paragraph 1 – point 18 b (new) Regulation (EU) No 904/2010 Article 50 – paragraph 1 a (new)
Text proposed by the Commission Amendment   (18b)  In Article 50, the following paragraph is inserted:   ‘1a.  When a Member State provides wider information to a third country than that provided for under Chapters II and III of this Regulation, that Member State may not refuse to provide that information to any other Member State requesting cooperation or having an interest to receive it.’
Amendment    40 Proposal for a regulation Article 1 – paragraph 1 – point 19 – point a Regulation (EU) No 904/2010 Article 55 – paragraph 2
Text proposed by the Commission Amendment 2.  Persons duly accredited by the Security Accreditation Authority of the Commission may have access to this information only in so far as it is necessary for care, maintenance and development of the electronic systems hosted by the Commission and used by the Member States to implement this Regulation; 2.  Persons duly accredited by the Security Accreditation Authority of the Commission shall have access to this information in so far as it is necessary for care, maintenance and development of the electronic systems hosted by the Commission and used by the Member States to implement this Regulation, and to ensure the proper implementation of this Regulation;
Amendment    41 Proposal for a regulation Article 1 – paragraph 1 – point 19 – point b Regulation (EU) No 904/2010 Article 55 – paragraph 5
Text proposed by the Commission Amendment 5.   All storage, processing or exchange of information referred to in this Regulation is subject to the provisions of Regulation (EU) 2016/679 of the European Parliament and of the Council(*). However, Member States shall, for the purpose of the correct application of this Regulation, restrict the scope of the obligations and rights provided for in Articles 12 to 22 and Articles 5 and 34 of Regulation (EU) 2016/679 to the extent required in order to safeguard the interests referred to in Article 23(1)(e) of that Regulation. The processing and storage of information referred to in this Regulation shall be carried out only for the purposes referred to in Article 1(1) of this Regulation and the storage periods of this information shall be limited to the extent necessary to achieve those purposes.’ 5.   All storage, processing or exchange of information referred to in this Regulation is subject to the provisions of Regulation (EU) 2016/679 of the European Parliament and the Council(*). However, Member States shall, for the purpose of the correct application of this Regulation, restrict the scope of the obligations and rights provided for in Articles 12 to 22 and Articles 5 and 34 of Regulation (EU) 2016/679 to the extent required in order to safeguard the interests referred to in Article 23(1)(e) of that Regulation. The processing and storage of information referred to in this Regulation shall be approved only for the purposes referred to in Article 1(1) of this Regulation and the storage periods of this information shall be limited to the extent necessary to achieve those purposes.’

EXPLANATORY STATEMENT

Value added tax (VAT) is an important source of tax revenue for the Member States. Yet countries are missing out on some of that revenue due to fraud. Within the context of VAT, cross-border tax fraud is one of the major problems facing the Member States. The current system of the taxation of trade between the Member States is unable keep up with the increasing speed of the economy.

Your Rapporteur welcomes the Commission’s proposal to strengthen cooperation between Member States in order to help them fight the VAT fraud more easily, quickly and efficiently. However, some improvements were necessary.

Your Rapporteur believes that the legislative proposal needs to strike the right balance between requests for and analysing of information on the one hand and data protection and privacy on the other. Hence several amendments have been introduced that seek to more clearly define the operating boundaries of Eurofisc as well as the processing and use of information by the authorities. References to relevant data protection legislation have been inserted.

Similarly, the proposal has been improved so as to strike a better balance between the interests and responsibilities of the requesting and the requested authorities. Without undermining the ability for the requesting authorities to launch administrative enquiries, the rights of the requested authorities are now better served. Furthermore, a more simplified mechanism on how the Member States deal with outstanding VAT liabilities is introduced. Due to evolution of the respective file, Your Rapporteur has deleted provisions relating to certified taxable person.

With other minor amendments Your Rapporteur has strived to further improve and clarify the spirit of the proposal.

PROCEDURE – COMMITTEE RESPONSIBLE

Title	Amended proposal for a Council regulation amending Regulation (EU) No 904/2010 as regards measures to strengthen administrative cooperation in the field of value-added tax
References	COM(2017)0706 – C8-0441/2017 – COM(2017)0567 – C8-0362/2017 – 2017/0248(CNS)
Date of consulting Parliament	23.10.2017
Committee responsible        Date announced in plenary	ECON 26.10.2017
Committees asked for opinions        Date announced in plenary	JURI 26.10.2017
Not delivering opinions        Date of decision	JURI 20.11.2017
Rapporteurs        Date appointed	Roberts Zīle 14.12.2017
Discussed in committee	16.5.2018	18.6.2018
Date adopted	19.6.2018
Result of final vote	+: –: 0:	51 2 3
Members present for the final vote	Gerolf Annemans, Burkhard Balz, Hugues Bayet, Pervenche Berès, David Coburn, Thierry Cornillet, Esther de Lange, Markus Ferber, Jonás Fernández, Sven Giegold, Neena Gill, Roberto Gualtieri, Brian Hayes, Gunnar Hökmark, Cătălin Sorin Ivan, Petr Ježek, Barbara Kappel, Georgios Kyrtsos, Philippe Lamberts, Werner Langen, Olle Ludvigsson, Ivana Maletić, Fulvio Martusciello, Gabriel Mato, Alex Mayer, Bernard Monot, Caroline Nagtegaal, Luděk Niedermayer, Stanisław Ożóg, Sirpa Pietikäinen, Anne Sander, Alfred Sant, Martin Schirdewan, Pedro Silva Pereira, Peter Simon, Theodor Dumitru Stolojan, Kay Swinburne, Paul Tang, Ramon Tremosa i Balcells, Ernest Urtasun, Marco Valli, Miguel Viegas, Jakob von Weizsäcker, Marco Zanni
Substitutes present for the final vote	Andrea Cozzolino, Ashley Fox, Doru-Claudian Frunzulică, Syed Kamall, Alain Lamassoure, Thomas Mann, Luigi Morgano, Michel Reimon, Joachim Starbatty
Substitutes under Rule 200(2) present for the final vote	Jens Gieseke, Agnieszka Kozłowska-Rajewicz, Rupert Matthews
Date tabled	22.6.2018

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

51	+
ALDE	Thierry Cornillet, Petr Ježek, Caroline Nagtegaal, Ramon Tremosa i Balcells
ECR	Ashley Fox, Syed Kamall, Rupert Matthews, Stanisław Ożóg, Joachim Starbatty, Kay Swinburne
ENF	Barbara Kappel
GUE/NGL	Martin Schirdewan, Miguel Viegas
PPE	Burkhard Balz, Markus Ferber, Jens Gieseke, Brian Hayes, Gunnar Hökmark, Agnieszka Kozłowska-Rajewicz, Georgios Kyrtsos, Alain Lamassoure, Esther de Lange, Werner Langen, Ivana Maletić, Thomas Mann, Fulvio Martusciello, Gabriel Mato, Luděk Niedermayer, Sirpa Pietikäinen, Anne Sander, Theodor Dumitru Stolojan
S&D	Hugues Bayet, Pervenche Berès, Andrea Cozzolino, Jonás Fernández, Doru-Claudian Frunzulică, Neena Gill, Roberto Gualtieri, Cătălin Sorin Ivan, Olle Ludvigsson, Alex Mayer, Luigi Morgano, Alfred Sant, Pedro Silva Pereira, Peter Simon, Paul Tang, Jakob von Weizsäcker
VERTS/ALE	Sven Giegold, Philippe Lamberts, Michel Reimon, Ernest Urtasun

2	-
EFDD	David Coburn, Marco Valli

3	0
EFDD	Bernard Monot
ENF	Gerolf Annemans, Marco Zanni

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention