ETAF recommendations for the future EU e-invoicing strategy
ETAF submitted on Friday 7 February its recommendations to the European Commission on the future EU electronic invoicing policy strategy, expected to be released in the first half of 2025. The strategy will aim to increase the mass adoption of e-invoicing by potential integration of electronic invoicing modules in ERP systems, ensure e-invoicing efficient transmission via interoperable infrastructures and exploring new uses for e-invoicing such as leveraging e-invoicing for automated compliance in VAT reporting or ESG reporting. ETAF stressed that one key concern is the regulation of Peppol access points, as many countries currently lack oversight, increasing the risk of fraud and privacy breaches. ETAF advocates for mandatory regulations across all EU Member States. Another critical demand from ETAF is setting up automatic mandates for regulated tax advisers and accountants, allowing them to verify the identity of legal representatives and validate mandates. The rapid expansion of new e-invoicing players raises concerns about financial data ownership and misuse. Many commercial intermediaries, such as banks and software providers, lack ethical obligations and could exploit company data for profit. National professional bodies have taken proactive steps by developing their own platforms or collaborating with secure providers to enforce strict data protection rules. The European Commission should establish core regulatory principles for these service providers, with tax advisers and accountants playing a key role in enforcement, ETAF said.
Difficult start of the UN tax talks amid US withdrawal
The first organisational session of a UN Tax Convention took place in New York from 3 to 6 February to address and conclude organizational matters, including decision-making rules. On Monday 3 February, the session started with the announcement of the United States that it intends to withdraw from the entire UN process to negotiate a framework convention on international tax cooperation and encouraged other countries to join. This announcement followed a similar one last week about the withdrawal of the US from the Global Tax Deal. On organizational matters, several Northern countries reiterated their preference for making decisions on a UN tax framework convention by consensus, despite most other Southern nations favouring majority voting. The method by which the convention’s intergovernmental negotiating committee will reach decisions has become a central point of contention, highlighting a divide between wealthier nations and developing or emerging economies. During the meeting, Poland, representing EU Member States, reportedly emphasized the EU’s commitment to consensus-based decision-making to ensure all countries’ perspectives and priorities are considered. Finally, after three days of deliberation, countries reportedly agreed to make decisions on a UN Tax Convention by simple majority, with a two-thirds majority needed to approve any protocols to the Convention. Countries also agreed to negotiate a second early protocol to the Convention focusing on dispute prevention and resolution.
FISC MEPs quiz EU Tax Commissioner
MEPs from the FISC Subcommittee of the European Parliament held on Thursday 6 February an exchange of views with EU Tax Commissioner Wopke Hoekstra. Mr Hoekstra presented his priorities, which include enhancing competitiveness, supporting the green transition, and ensuring fairness and transparency in taxation. He said that simplifying and fraud-proofing the EU’s tax laws, further reforming VAT rules, favouring renewable energy through tax policy, and better addressing the tax gap would be some of his main priorities. Several MEPs asked for some details on how the EU should approach the US regarding its position on various taxation issues. Mr Hoekstra reiterated that the EU should standby its positions which are founded on solid arguments, engage in constructive dialogue with the Trump administration while, at the same time, being ready to respond to defend European companies. MEPs also asked for more details on the “28th regime” proposed in January by Commission President von der Leyen, notably regarding which companies could fall under it. They also asked Mr Hoekstra to reiterate his commitment to a digital services tax and the review of the anti-tax avoidance directive. Finally, questions were put to Mr Hoekstra on the timelines for reviewing the energy taxation directive and the tobacco directive as well as regarding the challenges for establishing a billionaire tax and setting up a tax framework for the financial sector.
S&D seminar on capital and wealth taxation in the EU
On Tuesday 4 February, the Foundation for European Progressive Studies (FEPS) and the Kalevi Sorsa Foundation, in collaboration with the S&D Group in the European Parliament, organised a seminar on the need to reform wealth and capital income taxation. On this occasion, a study from the FEPS was presented and debated. The study examines the current state of capital income tax avoidance in the EU and presents policy proposals to solve the current problems. It presents five tax policy recommendations that would, according to the authors, tackle capital income tax base erosion and tax avoidance addressed in the study: - adopt a Directive establishing a minimum capital income tax rate ; - adopt an anti-tax avoidance directive (ATAD) for capital income, including an exit tax rule for individuals ; - adopt a directive to tax unrealised capital gains ; - complement the minimum capital income tax rate with net wealth taxes on the ultra-rich ; - extend the scope of the EU Code of Conduct on Business Taxation to include capital income taxation.
European Commission publishes draft DAC7 implementing regulation for feedback
The European Commission published on Tuesday 4 February, for feedback, a draft implementing regulation concerning the list of statistical data to be provided by Member States in relation to Council Directive (EU) 2021/514 (so called DAC7). The text specifies that before 1 April each year Member States shall communicate by electronic means to the Commission the statistical data on mandatory automatic exchange of information reported by digital platform operators in accordance with DAC7. It also sets out a list of statistics to be provided in relation to joint audits. Interested stakeholders have until 4 March 2025 to give a feedback. The feedbacks received will be taken into account for finalising this technical act.
European Commission sets up new Competitiveness Task Force
The European Commission announced on Monday 3 February the establishment of a new Task Force “EU's Future Competitiveness”, which will coordinate the work to operationalise the framework set out in the Competitiveness Compass. The Task Force kicked off its work on 1 February 2025 and is formally attached to the Deputy Secretary-General in charge of policy coordination. Its main aim is to support activities across the Commission on closing the innovation gap, combining industrial decarbonisation and competitiveness, and reducing excessive dependencies and increasing security. It will promote policy coherence and consistency in the preparations of flagships actions, including on simplification and better implementation of the regulatory frameworks, and will develop the Competitiveness Coordination Tool. The Task Force will interact with national authorities, industry and businesses to take stock of developments on the ground and monitor progress in dismantling structural barriers to EU productivity growth and competitiveness, the Commission said.
