Updated: Jul 18, 2020
Taxi driver organisation, TaxiEurope Alliance (TEA), has welcomed the first steps taken which could see EU tax bodies exchanging information on digital income platforms like Uber.
On Wednesday the European Commission adopted an ambitious new Tax Package to ensure that EU tax policy supports Europe's economic recovery and long-term growth.
Fair taxation is said to remain a top priority for the European Commission, as a means of protecting public revenues, which is hoped will play an important role for the EU's economic recovery post-COVID-19.
The EU package is seeking to boost tax fairness, by intensifying the fight against tax abuse, curbing unfair tax competition and increasing tax transparency. The new proposals are made up of three separate, but related initiatives; The Tax Action Plan, communication on tax good governance and, most telling for the taxi and private hire industry, the proposal on administrative cooperation (DAC7).
DAC7 proposes to extend EU tax transparency rules to digital platforms, which would include multi-national ride-hailing firms, so that those who make money through the sale of goods or services on platforms pay their fair share of tax too.
This new proposal will ensure that Member States automatically exchange information on the revenues generated by sellers on online platforms. The proposal also strengthens and clarifies the rules in other areas in which Member States work together to fight tax abuse, for example through joint tax audits.
Wednesday’s package is the first part of a comprehensive and ambitious EU tax agenda for the coming years. The Commission will also work on a new approach to business taxation for the 21st century, to address the challenges of the digital economy and ensure all multinationals pay their fair share.
A spokesperson from European taxi representatives, TEA, responded to the news saying: “As TEA, we welcome the commissions proposal to make Member States’ tax bodies automatically exchange information on income generated by sellers on digital platforms like Uber. This is an important step forward, while we wait for rules on taxation of digital economy.”
Valdis Dombrovskis, Executive Vice-President for an Economy that works for People, said: “Now more than ever, Member States need secure tax revenues to invest in the people and businesses who need it most. At the same time, we need to break down tax obstacles and make it easier for EU companies to innovate, invest and grow. Today's Tax Package takes us in the right direction, helping to make taxation fairer, more user-friendly and more adapted to our digital world.”
Paolo Gentiloni, Commissioner for Economy, said, “Fair taxation is the springboard that will help our economy bounce back from the crisis. We need to make life easier for honest citizens and businesses when it comes to paying their taxes, and harder for fraudsters and tax cheats. These proposals will help Member States to secure the revenues they need to invest in people and infrastructure, while creating a better tax environment for citizens and businesses throughout Europe.”