Council Directive (EU) 2021/514 amending Directive 2011/16/EU on administrative cooperation in the field of taxation

Author (Corporate)
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Series Details L 104, Pages 1-26
Publication Date 25/03/2021
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Summary:

Council Direction (EU) 2021/514 - adopted by the Council of the European Union on 22 March 2021 - setting out a revision of the Directive on administrative cooperation (DAC7).

Further information:

Directive 2011/16/EU lays down the rules and procedures that national authorities in Member States of the European Union (EU) must apply when exchanging information on tax matters.

The purpose of the proposed amendments is to extend the EU tax transparency rules to digital platforms. Member States are to automatically exchange information on income generated by sellers on digital platforms. Revised rules are to allow national authorities to identify situation where tax should be paid, and are to reduce the administrative burden placed on platforms, who have to deal with several, different national reporting requirements.

The need for this proposal arose from the outcome of different assessments, which highlighted scope for improvement in matters relating to the exchange of information and administrative cooperation. They also demonstrated that the rule for using simultaneous controls and allowing the presence of officials of a Member States during an enquiry in another Member State lacked a legal base in some of the national systems.

This draft law was adopted by the European Commission on 15 July 2020, as part of a Tax Package alongside an Action Plan for fair and simple taxation supporting economic recovery in the EUThe Council of the European Union endorsed a compromise text concerning this proposal on 1 December. The Act was published in the Official Journal on 25 March 2021.

Source Link http://data.europa.eu/eli/dir/2021/514/oj
Related Link(s)
Commentary and Analysis
EPRS: Briefing, November 2020: Better cooperation against tax fraud and evasion (Initial Appraisal of a European Commission Impact Assessment) https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2020)654182
Kluwer International: Tax Blog, 22/03/2021: Joint audits under the new DAC 7 http://kluwertaxblog.com/2021/03/22/joint-audits-under-the-new-dac-7/
Ernst&Young: Tax News, 24/03/2021: EU adopts tax transparency rules for digital platforms (DAC7) https://taxnews.ey.com/news/2021-0614-eu-adopts-tax-transparency-rules-for-digital-platforms-dac7
EPRS: Briefing, April 2021: Advances in administrative cooperation in the field of taxation https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2021)679099

News
EurActiv, 23/03/2021: Sales on online platforms must be reported to tax authorities as of 2023 https://www.euractiv.com/section/digital/news/sales-on-online-platforms-must-be-reported-to-tax-authorities-as-of-2023/

Official
EUR-LEX: COM(2020)314: Proposal for a Council Directive amending Directive 2011/16/EU on administrative cooperation in the field of taxation https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:314:FIN
EUR-Lex: SWD(2020)129: Subsidiarity Grid (Staff Working Document accompanying the Proposal) https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2020:129:FIN
EUR-Lex: SWD(2020)130: Executive Summary of the Impact Assessment: 'Tax fraud and evasion – better cooperation between national tax authorities on exchanging information' https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2020:130:FIN
EUR-Lex: SWD(2020)131: Impact Assessment: 'Tax fraud and evasion – better cooperation between national tax authorities on exchanging information' https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2020:131:FIN
European Parliament: Legislative Observatory: Procedure File for Proposal on Administrative cooperation in the field of taxation (2020/0148(CNS)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2020/0148(CNS)
European Parliament: Legislative Train Schedule: Proposal for a Council Directive amending Directive 2011/16/EU on administrative cooperation in the field of taxation https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-administrative-cooperation-in-the-field-of-taxation/02-2021
European Commission: DG Taxation and Customs Union: Administrative Cooperation https://ec.europa.eu/taxation_customs/business/tax-cooperation-control/administrative-cooperation_en
European Commission: DG Taxation and Customs Union: Package for fair and simple taxation https://ec.europa.eu/taxation_customs/general-information-taxation/eu-tax-policy-strategy/taxation-package_en
European Commission: Press Release, 15/07/2020: Fair and Simple Taxation: Commission proposes new package of measures to contribute to Europe's recovery and growth https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1334
European Commission: Questions and Answers on the Tax Package (15 July 2020) https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_1337
European Commission: Press remarks by Executive Vice-President Valdis Dombrovskis on fair and simple taxation: a new package of measures to contribute to Europe's recovery and growth (15 July 2020) https://ec.europa.eu/commission/presscorner/detail/en/speech_20_1363
European Commission: Press remarks by Commissioner Paolo Gentiloni on fair and simple taxation: a new package of measures to contribute to Europe's recovery and growth (15 July 2020) https://ec.europa.eu/commission/presscorner/detail/en/speech_20_1360
European Commission: Press Release, 01/12/2020: Fair Taxation: Member States agree on new tax transparency rules on digital platforms https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2253
Council of the European Union: Press Release, 22/03/2021: Taxation: Council adopts new rules to strengthen administrative cooperation and include sales through digital platforms https://www.consilium.europa.eu/en/press/press-releases/2021/03/22/taxation-council-adopts-new-rules-to-strengthen-administrative-cooperation-and-include-sales-through-digital-platforms/

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