Considerations on COM(2020)199 - Amendment of Implementing Regulation (EU) 2019/2026 as regards the dates of application due to the outbreak of the COVID-19 crisis - Main contents
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| dossier | COM(2020)199 - Amendment of Implementing Regulation (EU) 2019/2026 as regards the dates of application due to the outbreak of the COVID-19 ... |
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| document | COM(2020)199  |
| date | July 20, 2020 |
| (2) | Council Implementing Regulation (EU) 2019/2026 (3) amends those provisions to extend the scope of existing special schemes and introduce a new scheme in order to modernise the legal framework for value added tax (VAT) for cross-border business-to-consumer (B2C) e‐commerce. Those amendments are to be applied from 1 January 2021. |
| (3) | On 30 January 2020, the World Health Organization (WHO) declared the COVID‐19 outbreak a public health emergency of international concern. On 11 March 2020, the WHO declared the COVID‐19 outbreak a pandemic. The COVID‐19 pandemic has affected all Member States. Due to the alarming increase in cases and the lack of efficient means immediately available to deal with the COVID-19 pandemic, numerous Member States have declared a national state of emergency. |
| (4) | The COVID-19 pandemic constitutes an unexpected and unprecedented emergency that deeply affects all Member States and obliges them to take immediate action at national level to deal with the ongoing crisis as a priority by reallocating resources reserved for other issues. As a result of this crisis, several Member States are encountering difficulties in finalising the development of IT systems necessary for the application of Implementing Regulation (EU) 2019/2026 as of 1 January 2021. Several Member States as well as postal and courier operators have therefore asked for the postponement of the dates of application of Implementing Regulation (EU) 2019/2026. |
| (5) | Taking into consideration the challenges that Member States face in tackling the COVID‐19 crisis and the fact that the new provisions are based on the principle that all Member States have to update their IT systems in order to be able to apply Implementing Regulation (EU) 2019/2026, and ensure the collection and transmission of information and payments under the modified schemes, it is necessary to postpone the dates of application of that Implementing Regulation by six months. A postponement of six months is appropriate, as the delay should be kept as short as possible in order to minimise additional budgetary losses for Member States. |
| (6) | In view of the significant impact of the economic disturbances and possible additional difficulties resulting from the COVID‐19 pandemic and in order to support the correct and timely application of the new VAT e‐commerce rules, the Commission could work closely with the Member States concerned to monitor the adaptation of the national IT systems and to provide technical assistance whenever needed. |
| (7) | Implementing Regulation (EU) 2019/2026 should therefore be amended accordingly, |