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EU taxpayers’ rights initiative – Public Consultation

The European Single Market has without a doubt brought immeasurable benefits to the lives of people all over Europe. However, paying taxes is not necessarily one of them. In particular for individuals with obligations in several Member States, the situation of taxpayers in the Single Market is, as of today, often complicated and unfair, with taxpayers often unaware of their rights. This is especially true for private individuals, the self-employed, and micro-enterprises, leading to individuals not making full use of their options and rights, with negative effects on economic and business behaviour and, consequently, on the Single Market as a whole.

 

For this reason the European Commission is pursuing taxation simplicity and fairness in their Tax Action Plan. Part of the Action Plan includes a “Communication taking stock of taxpayers’ existing rights under EU law”, and a “Recommendation to Member States to facilitate the implementation of taxpayers’ rights and to simplify tax obligations”. It will do so by reflecting “on how Member States may accommodate their tax laws’ related procedures to better respect and make more effective such rights” (European Commission, 2020). Further information on the taxpayers’ rights initiative can be found in the initiatives’ roadmap, which is accessible here.

The Recommendation will notably be based on a public consultation that is open now until the 2nd of June, and which can be easily accessed by following this link. In it, contributors are asked to report on their experiences with direct tax obligations as well as VAT (indirect taxes), especially in cross-border contexts. The consultation will thereby provide the European Commission with information on current tax-related issues and consequently enable it to identify best practices to remedy these problems. It is open for contributions of private individuals, both EU and non-EU citizens, as well as for institutions and organisations of any kind. It is available in 23 languages. The Recommendation is scheduled for the 3rd quarter of 2021.

As this issue is not only highly relevant for many of our members stakeholders, but since they will furthermore be able to provide valuable feedback on the matter, the European Commission and EURADA invite you to promote and partake in the public consultation on the EU taxpayers’ rights initiative.[JF1] [OB2] 

It is the long-term goal of the initiative that the results of both communication and consultation will lead to the design of new tax policies that will reduce bureaucratic burdens and harmonise procedures in Europe, especially through greater transparency, service orientation, and better use of digital technological developments.

EURADA is part of several committees and working groups of the European Commission that aim at designing policies related to SMEs, cohesion policy, and economic growth. We therefore not only receive regular information on these topics, but also take part in dialogue and exchange with the European institutions on these matters. We furthermore represent regional economic development experts and actively work to influence and improve the design of policies for them.

References
 European Commission. (2020). Recommendation to Improve the Situation of Taxpayers in the Single Market (Ref. Ares(2020)6140272) [Roadmap]. Accessible here: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12627-EU-taxpayers-rights-simplified-procedures-for-better-tax-compliance-Recommendation-