The European Commission (EC) issued a press release on 8 May 2020 announcing proposals to postpone the entry into force of certain EU taxation measures in response to the difficulties that businesses and EU Member States are facing due to the coronavirus (COVID-19) pandemic.
The measures postponed
As noted in the EC’s press release (8 May 2020), the EC is proposing to defer by three months certain deadlines for filing and exchanging information under the Directive on Administrative Cooperation (Council Directive 2011/16/EU, also known as “DAC”). The initiative comes in the form of a Directive amending the DAC and proposes the following:
The EC also proposes a possibility to further extend the deferral period once, for a maximum of three additional months. It is proposed that this option would only be invoked if during the initial period of deferral, the exceptional circumstances of severe risks for public health caused by the COVID-19 pandemic persist and the EU Member States are forced to implement lockdown measures.
The EC also proposes a delay of the entry into application of the value added tax (VAT) e-commerce package by six months— i.e. the rules would apply as from 1 July 2021 instead of 1 January 2021.
Unanimous agreement among EU Member States is required in order for the EC’s proposal to be adopted and enter into force. EU Member State representatives are expected to discuss the proposal on Monday 11 May 2020.
No official communication on the deferral of these measures has been issued by the Romanian tax authorities yet, but we expect unanimous agreement by EU Member States, given the discussions that have taken place so far about the possibility of postponing these deadlines in the context of COVID-19.
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