Work Programme of the Polish Presidency in the area of VAT Permanent Representation of the Republic of Poland to the EU Work Programme of the Polish Presidency in the area of VAT Krzysztof Nichczyński Fiscal Attaché at the Permanent Representation of the Republic of Poland to the EU Rue Stevin 139, 1000 Brussels tel. +32 2 7804 494, fax +32 2 7777 297 e-mail : krzysztof.nichczynski@msz.gov.pl

Work Programm of the Polish Presidency in the area of VAT List of subjects Permanent Representation of the Republic of Poland to the EU VAT treatment of insurance and financial services, VAT treatment of vouchers, Special scheme for supplies of travel servicies, Communication on the Future of VAT,

Work Programm of the Polish Presidency in the area of VAT Motto Permanent Representation of the Republic of Poland to the EU Motto: in economic and financial area generally: Structural reforms, faster economic growth, sounder public finances, in the tax area: Towards more transparent and simple regulation,

Work Programm of the Polish Presidency in the area of VAT VAT on financial services Permanent Representation of the Republic of Poland to the EU CION submitted proposal in December 2007 (amendments to Directive 2006/112/EC on the common system of value added tax and implementing regulation), aims of the initial propsal: increase legal certainty, deliver a level playing field in the pan-EU internal market, allow businesses to manage better the impact of non-deductible VAT,

Work Programm of the Polish Presidency in the area of VAT VAT on financial services Permanent Representation of the Republic of Poland to the EU Elements of the initial proposal: clarification and modernisation of the definitions of exempt financial and insurance services, cost sharing arrangements, option to tax, - proposal discussed extensively in the Council's Working Party on Tax Questions under the Slovenian, French, Czech, Swedish, Spanish, Belgian and Hungarian Presidencies,

Work Programm of the Polish Presidency in the area of VAT VAT on financial services Permanent Representation of the Republic of Poland to the EU - Presented to ECOFIN: 17 November 2010 – conclusions: work should be pursued as a priority on the modernisation of the definitions of exempt services; due consideration should be given to the need to ensure a level playing field for economic operators and for MSs, to the overall competitiveness of the EU's financial industry and to the implications for government budgets, 20 June 2011 – major outstanding issues: transfer of insurance and reinsurance contract portfolios, outsourcing, management of investment funds, derivatives, option to tax

Work Programm of the Polish Presidency in the area of VAT VAT on financial services Permanent Representation of the Republic of Poland to the EU to a large extent agreement was reached on a number of issues, many questions which are left are of political nature (widening or narrowing the scope of the current exemption, level playing field, competitiveness, budgetary implications), hard to identify middle ground and to overcome current deadlock (probably political guidelines are needed) , possible interaction between VAT on financial services and FST,

Work Programm of the Polish Presidency in the area of VAT VAT on vouchers Permanent Representation of the Republic of Poland to the EU no rules on VAT treatment of transactions involving vouchers in the VAT Directive, increased functionality in vouchers, specific characteristics of vouchers (distinction from more generalised payment instruments, commercial or promotional objective etc.), MSs developed their own solutions, problems such as distortion of competition, double or non-taxation and risk of tax avoidance,

Work Programm of the Polish Presidency in the area of VAT VAT on vouchers Permanent Representation of the Republic of Poland to the EU CION conducted analytical works in the Working Party No. 1 and public consultation was held, completely new proposal is expected to be adopted by the end of July (best case scenario), mostly technical issue e.g.: definition of vouchers, taxable amount, time of transaction, distribution of vouchers, aims: clarifying and harmonising rules across the EU, ensure consistency in the tax treatment of transactions involving vouchers,

Work Programm of the Polish Presidency in the area of VAT VAT on travel services Permanent Representation of the Republic of Poland to the EU special scheme for travel agents introduced in 1977 in order to: simplify the application of VAT rules for travel agents, assure that VAT accrues to the MS where service is actually consumed, in 2002 CION proposed modernisation: extension of margin taxation to B2B supplies, one-stop scheme for non-EU traders, global margin, opt –out clause,

Work Programm of the Polish Presidency in the area of VAT VAT on travel services Permanent Representation of the Republic of Poland to the EU negotiations halted in 2003 and Spanish Presidency resumed works in that scope after a seven-year break, main issue at stake: lack of a common understanding of the scope of the special scheme (B2C v. B2B), CION refered several MSs to ECJ over VAT rules for travel agents (others are likely), dedlock over the file: detailed impact assessment produced by the CION is required by some (2) MSs (right of the CION to withdraw the proposal),

Work Programm of the Polish Presidency in the area of VAT Communication on the future of VAT Permanent Representation of the Republic of Poland to the EU on 1 December 2010 CION launched a consultation process on Green Paper on the future of VAT (finished at the end of May), CION will adopt a Communication setting out the new VAT priorities before the end of the year at the earliest (end November/December), most probably that will not allow for discussions to start in Council during the Polish Presidency,

Work Programm of the Polish Presidency in the area of VAT Meetings Permanent Representation of the Republic of Poland to the EU for the time being there are planned: 9 meetings of Council's Working Party on Tax Questions (Indirect Taxation – VAT), 2 ECOFIN meetings where VAT isseus can be on the agenda (VAT on financial services and vouchers),

THANK YOU VERY MUCH FOR YOUR ATTENTION Permanent Representation of the Republic of Poland to the EU THANK YOU VERY MUCH FOR YOUR ATTENTION Krzysztof Nichczyński Fiscal Attaché at the Permanent Representation of the Republic of Poland to the EU Rue Stevin 139, 1000 Brussels tel. +32 2 7804 494, fax +32 2 7777 297 e-mail : krzysztof.nichczynski@msz.gov.pl