The
legislation, spearheaded through the EP by Sven Giegold (Greens, DE),
aims to oblige digital platforms to report the income earned by those
selling goods and services on their platforms. Tax authorities would
also be obliged share this information with each other. It was adopted
by 568 votes in favour, 63 votes against, and 64 abstentions.
Platforms need to register in the EU and can face sanctions
Non-EU platforms should be required to
register and report their activities in the single market in a single
member state, and must have substantial economic activities in the
chosen member state. Moreover, MEPs opted to provide for harmonised
sanctions against platforms that do not fulfil their reporting
obligations.
Quicker exchange of requested information
A tax authority receiving a request for
information should provide it no later than three months, rather than
six months, from the date it receives the request. By the end of 2022,
the Commission should submit a report assessing country-by-country how
well the system works, including how effective the information exchanges
are.
Scope of the automatic and compulsory exchange of information
A tax authority should automatically
communicate to the authority of another member state not only the
information that is available but also that which could reasonably be
made available.
As from 1 January 2022, no new bilateral
or multilateral advance pricing arrangements should be agreed by member
states with third countries that do not permit their disclosure to the
tax authorities of the other member states.
Quote of the rapporteur, Sven Giegold (Greens, DE)
“Extending the directive to cover
digital platforms will close one loophole, but others remain wide open.
Exchange of information will only be effective once all types of income
and assets are consistently included under this directive.
Unfortunately, the Council has already decided its position without
waiting for the European Parliament's proposals and has decided to
postpone implementing improvements by one year to January 2023. It is
irresponsible to forego urgently needed tax revenues in this time of
crisis. The EU Commission must take its responsibility in a time of
public deficit seriously and propose a strong review of the directive.”