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Commons Committee report on DAC 6

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The VAT ‘e-commerce package’ (new one-stop shop for distance sales of goods between EU member states) is to be delayed to 1 July 2021 (from 1 January 2021 as originally proposed). The abolition of low-value consignment relief will also be pushed back. The new DAC 6 reporting requirement on cross-border tax schemes had been due to take effect on 1 July 2020, but the Commission proposes to delay this to 31 January 2021.

These developments are highlighted by the House of Commons European Scrutiny Committee in its Eleventh Report of Session which also notes Commission approval of the SEISS under the EU state aid temporary framework.

The report notes that ‘the key consequences of the delayed application dates are, first, that the UK will have more time to apply the new VAT rules for goods bought online in Northern Ireland, and secondly that – by pushing the relevant deadline beyond the end of the post-Brexit transition period – it will effectively lift the requirement on the Government to exchange information with its counterparts in the EU on information filed by British tax advisors on cross-border tax arrangements.’

Under DAC 6, intermediaries (including tax advisers) are required to report certain cross-border tax planning arrangements to their national authorities, that information then being shared under the Directive. 

Issue: 1493
Categories: News