25 June 2021

RESOLUTION OF CROSS-BORDER TAX DISPUTES FOR SMEs

The European Commission has launched a public consultation on a possible EU cooperative compliance programme, which will allow the tax administrations of EU Member States to resolve together, in a preventive manner, cross-border tax issues faced by small and medium enterprises operating within the EU. The project follows from the Action Plan for fair and simple taxation supporting the recovery strategy, adopted in July 2020.

The programme would offer the opportunity to taxpayers to submit to the tax administration of their Member State of residence a problem they face in the area of taxation in their cross-border activities. The tax administration would then communicate the problem to their relevant counterpart in another Member State and attempt to reach a common decision on the problem.

The consultation is available only in English and the deadline to provide a response is 15 September. At the end of the questionnaire, you will find a presentation with more information on the programme, that is available to download.