The Estonian Presidency will focus on modernising the VAT system. To this end, it is necessary to contribute to reducing administrative burden and strengthen the system's resilience to fraud in order to reduce the disturbing VAT gap in Europe.
Among other things, the Presidency considers it important that the modern technological opportunities are more utilised in tax administration as well as in cooperation between the Member States. On the one hand, the life of taxpayers should be made simpler, and on the other hand, the collection of taxes should be ensured, and tax avoidance and fraud tackled. In this way, we will guarantee equal conditions for competition and the tax revenue necessary for the development of society. Estonia will work to achieve political agreement on draft legislation on e-publications and the general reverse charge mechanism. Also, an agreement on the main elements of the VAT e-commerce proposal will be sought. The Presidency will also start discussions on the proposals regarding the definite VAT system and reduced rates.
Fighting against tax evasion, tax avoidance and tax fraud has been in the focus in recent years. Ensuring the taxation of profits in the countries where the value is created has become a priority. Fair and growth-friendly taxation are also important principles for the Presidency. We will continue discussing the proposal for a Council Directive on a Common Corporate Tax Base (CCTB). Here, it is important to assess the impact of the CCTB on the tax revenues of states; and in order to ensure the competitiveness and attractiveness of tax systems; it is also necessary to consider international developments. In addition, we would also like to initiate a discussion on the challenges to achieving the fair taxation of the digital economy.
In order to ensure a level playing field, we will proceed with the proposal on disclosing tax avoidance schemes to financial intermediaries, and we are committed to adopting the common EU list of non-cooperative third countries.
For the more effective functioning of the customs union, the Presidency wishes to shape the positions/guidelines of the Council on the joint development of electronic customs systems.