The next meeting of the Economic and Financial Affairs Ministers of the European Union (ECOFIN) Council will take place on June 16, 2023. Until now 3 tax matters are included on the provisional agenda for the ECOFIN Council of June 16, 2023. Remarkably enough until now the Unshell Directive is not mentioned as one of the matters that are to be discussed on June 16, 2023.

VAT in the digital age

Ministers will be invited to hold a policy debate on this legislative package and to give political guidance on a number of key issues which are currently the subject of discussions at the level of experts of the member states.

On December 8, 2022, the Commission had presented the ‘VAT in the digital age’ package which consists of three proposals:

• A proposal for a Council directive amending directive 2006/112/EC as regards VAT rules for the digital age;
• A proposal for a Council regulation amending regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements needed for the digital age; and
• A proposal for a Council implementing regulation amending implementing regulation (EU) No 282/2011 as regards information requirements for certain VAT schemes.

The three proposals have the following objectives:

• They set out to modernise the reporting obligations for VAT purposes by standardising the information that needs to be submitted by taxable persons on each transaction and by imposing the use of e-invoicing for cross-border transactions, which would contribute to the fight against VAT fraud (digital reporting requirements);
• They seek to address the challenges of the platform economy by enhancing the role of platforms in the collection of VAT when they facilitate the supply of short-term accommodation rental or passenger transport services (platform economy); and
• They support the aim of reducing the need to register for VAT purposes in multiple EU member states, by improving the functioning of and expanding the existing one-stop shop systems and reverse charge mechanisms (single VAT registration).

Business taxation: Code of Conduct Group

The Council is expected to approve conclusions on the progress achieved by the Code of Conduct Group during the Swedish presidency (January to June 2023).

Report to the European Council on tax issues

The Council is expected to approve the biannual Ecofin report to the European Council on tax issues. This report provides an overview of the progress achieved in the Council during the term of the Swedish Presidency, as well as an overview of the state of play of the most important dossiers under negotiation in the area of taxation.

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