On 13-14 March the Expert Group on Taxation of the Digital Economy held their third meeting.
On the basis of a further Working Paper prepared by the Commission, the group discussed in more detail the new rules concerning the supply of electronic services that will enter into force in 2015. These rules will set the destination principle as the general rule for telecommunication, broadcasting and electronically provided services and will be combined with a Mini One Stop Shop (MOSS) to facilitate administration for businesses. The group deliberated on how the scope of the 2015 system could potentially be extended at a later stage. The group discussed in more detail how remaining challenges for tax administrations in the area of enforcement and audit could be addressed. The group also deliberated on possible further improvements of the VAT system in the EU on the medium and longer term, improving neutrality in general and reducing the administrative burden for both companies and tax administrations. The group agreed that digitalisation could also represent a useful tool in this respect. Furthermore, the group discussed the main issues in the area of company taxation. It discussed the EU's priorities in the global tax debate and focussed both on the specific characteristics of digitalisation causing challenges for corporate tax systems (i.e. intangibles and nexus) as well as more fundamental systemic topics such as basing the place of taxation on the residence or on the source principle.