1. Exchange of VAT-relevant payment data
VAT forum
19 February 2018
European Commission TAXUD

2. VAT Action Plan: 2016 COM(2016)148 final
Background
VAT Action Plan: 2016 COM(2016)148 final
Simplifications and robust VAT system on cross border B2C supplies
VAT e-commerce package: Directive EU 2017/2455
Detection of "non-compliance"
FPG038 expert group of tax authorities on e-commerce control
FWS068 Workshop in 2016 e-commerce control
VAT forum sub-group on e-commerce

3. EU Commission initiative on payment data: problem tree
General problem: VAT loss
Specific problems:
Lack of detection tools
Loopholes to exchange data
Legal uncertainty for payment intermediaries
Expected impact:
Reduction VAT fraud
Level playing field for businesses

4. Why "follow the money" No physical presence of the supplier
Almost 100% of online purchases use payment intermediaries
Alternative approaches:
Follow the goods
Internet monitoring
Administrative cooperation
FIU …
Other field of taxation experiences: DAC and Saving Directive

5. Cross-border B2C supplies of services and goods
Scope
Cross-border B2C supplies of services and goods
Detection remote suppliers (within the EU or outside the UE)
Detection undeclared or under-declared supplies
Detection of wrong place of consumption
Data protection
Limited access to data
Confidentiality
Limited storage of data
Limited set of data
Only data referring to VAT loss
Outside the scope
Enforcement (recovery, precautionary measures, JSL, international agreements…)

6. Commission approximate timeline
January 2018 – May 2018
Impact assessment on 3 options
Option 1: baseline
Option 2: non-regulatory solution
Option 3: regulatory solution
Targeted consultation
VAT forum sub-group on e-commerce
Eurofisc WF5
Open Public consultation
June 2018 – adoption of the Commission initiative

7. Impact assessment
The IA will try – if possible – to assess the impact on:
VAT revenues
Competitiveness
Costs and administrative burdens (of the different stakeholders)
Fundamental rights (data protection)
It will be accompanied by a technical/feasibility study

8. Options structure The options are alternative (no cumulative)
A 3 phased process
Collection payment data
Risk analysis
Administrative cooperation (exchange/share data)
Common definition of VAT relevant payment data
Identification of the payee/supplier (name, address, tax number…)
Payment transactions unique identifier
Total amount of payment transaction
Date of payment
Country of origin of the payment
Description of the supply underlining the payment transaction
Common definition of payment intermediaries
Definition from PSD2, exception payment initiation services ?

9. Option 1: baseline Collection payment data
Possible only in 14 MSs out of 21 (depending on national legislation)
Different intermediaries, payment data, format in different MSs
Other tools for detection: internet tools, follow the goods (on import)…
Risk analysis
At national level
Shared withing Eurofisc WF5
Data protection issues
Administrative cooperation
Only spontaneous between MSs (Article 13 Council Reg 904/2010)
Limitations pursuant to the principle of proportionality (bulk requests no possible)

10. Option 2: non regulatory
Investing in administrative capacity
i.e. Fiscalis, SRSP
Collection payment data
Like option 1
Plus EU guideline and optional standard forms for the collection of data
Risk analysis
Plus EU guideline for the use of 3rd parties data
Administrative cooperation

11. Option 3: regulatory 5 alternative sub-options
Sub-option 3.1: automatic exchange of information
Sub-option 3.2: automated access
Sub-option 3.3: central storage and risk analysis
Sub-option 3.4: sub-option single contact for payment intermediaries
Sub-option 3.5: sub-option the payment intermediaries uploading data directly in the central electronic repository

12. Sub-option 3.1: automatic exchange of information
Collection payment data
Monthly or quarterly or yearly transmission of data form PSP to tax administration of establishment
Inbound+outbound payments
Threshold (per payee) to be decided
Risk analysis
At national level
Inbound payments > domestic sellers / outbound payments > remote sellers
Administrative cooperation
Automatic exchange
Data agglomerated per MS
Quarterly transmission of data per MS (inbound+outbound)
Covers only intra-EU payments

13. Sub-option 3.2: automated access
Collection payment data
Like 3.1
Risk analysis
Administrative cooperation
Data stored at national level
Data made available to other MSs through VIES
Covers only intra-EU payments

14. Sub-option 3.3: central storage and risk analysis
Collection payment data
Data collected from PSP on daily or weekly or monthly or quarterly or yearly basis
Thresholds per payee to be considered
Data uploaded in an EU central electronic repository
To be developed later on during the implementation phase
By the Commission / specifications to be decided with MSs
Access only to Member States' Eurofisc WF5 officials
Access to the Commission only for maintenance of the system
Risk analysis
Centralised
Software to be developed by the Commission with the Member States
Short retention of data (1 year)
Administrative cooperation
Only Eurofisc WF5 officials will have access to the data

15. Sub-option 3. 4: sub-option 3
Sub-option 3.4: sub-option single contact for payment intermediaries
Collection payment data
PSPs will choose one single tax authority to transmit all data for all the MSs
Thresholds per payee to be considered
Data uploaded in an EU central electronic repository
To be developed later on during the implementation phase
By the Commission / specifications to be decided with MSs
Access only to Member States' Eurofisc WF5 officials
Access to the Commission only for maintenance of the system
Risk analysis
Like 3.3
Administrative cooperation

16. Sub-option 3. 5: sub-option 3
Sub-option 3.5: sub-option the payment intermediaries uploading data directly in the central electronic repository
Collection payment data
PSPs established in the EU upload the data in a EU central repository (without passing through tax authorities)
To be developed later on during the implementation phase
By the Commission / specifications to be decided with MSs
Access only to Member States' Eurofisc WF5 officials
Access to the Commission only for maintenance of the system
Thresholds per payee to be considered
Risk analysis
Like 3.3
Administrative cooperation