Name: Subcommittee on Tax Matters Ordinary meeting
Uploaded: 2026-06-25T07:00:00+00:00
Duration: 6954 s

04:53 - 08:35

Speaker 1

Good morning everybody. Thank you for being here. So we can start. As usual I will inform you that we do have two languages available for interpretation. The documents are available on the FISC website and we do have as usual the webstreaming of the session.

The agenda was emailed on 21st of May, so if there are no objection, the agenda is adopted. Just tell me if let me say a few things. At the meeting of the 2nd of June FISC coordinator took the following decision. They agreed to organize four public hearings on the following topics during 2026. The second well, the last quarter.

Taxation trend in EU member states, how tax policy or tax compliance can be improved. How sorry, how tax policy or tax compliance can be improved. Closing the loop, how taxation can drive the circular economy. And then harmful tax practice in the field of taxation of individuals. And finally the impact of robotics and artificial intelligence on tax system.

They agreed as well on the expert representative of national authority to be invited to the interparliamentary committee meeting which take place on 12th of October 2026. They agreed as well to be on the expert to be invited to the public hearing on the upcoming proposal to recast the directive on administrative cooperation on 14th of July. They agreed to adapt the scope of the study on protecting growth and fairness in the EU enforcement and evidence on wealth tax on ultra-high net worth individual in order to avoid overlap with a recent European Commission study on wealth taxes. The coordinator agreed as well to endorse the tentative calendar of FISC committee and coordinator meeting 2027. And finally they agreed to organize the joint public hearing CONT FISC IMCO public hearing on the countering VAT and custom fraud for the protection of the Union financial interest, the anti-fraud architecture revision that will take place on 7th of September.

If no objection, the minutes of the 2nd of June 2026 are adopted. Now we go to the main topic of this first session of the morning, the presentation of the European Parliamentary Research Service's study on VAT reverse charge mechanism. We do have with us three colleagues, well, four colleagues and the Commission as well, in the person of Raluca Trasca, head of unit at VAT policy. We will start with Dr. Mafalda Monda. She will manage the session giving the floor as well to the colleague presenting the report.

We are all listening for that because we have as well after that Pierre, Mr. Pampi, who is in charge of the INI report on the same issue. So thank you very much, Mafalda, the floor is yours and after that we take questions from our colleagues.

08:35 - 11:08

Speaker 5

Thank you, Chair. Honorable members, thank you for the opportunity to present this study. This study is a part of the European Implementation Assessment series, which is regularly prepared by the Ex-Post Evaluation Unit of EPRS to provide evidence-based support to parliamentary committees in the preparation of their implementation report. The study reflects the Parliament's commitment to the better regulation agenda and to evaluate first principle. The study specifically supports the European Parliament scrutiny of the implementation and the impact of the VAT reverse charge mechanism under the VAT Directive.

It provides a comprehensive evaluation of the VAT reverse charge mechanism effectiveness in combating fraud, its impact on administrative burden and compliance costs for tax authorities and businesses. To carry out this study, the Ex-Post Evaluation Unit of EPRS commissioned a consortium of external experts from CEPS and Economis, who conducted the research between February and May 2026. The study employs a mixed-method approach, combining quantitative and qualitative information, desk research, and stakeholder interviews at EU and national levels. A questionnaire was distributed also to tax administration in all 27 member states, with responses received from 20 member states. Additionally, business interviews were conducted across selected sectors in eight member states with experience in the implementation of the VAT reverse charge mechanism.

The study also offers recommendations useful for the review of the VAT reverse charge mechanism and its potential extension beyond the current application deadline of 31st December 2026. The study was published this week and has been circulated to FISC members following its publication. I will now give the floor to Mr. Camilo Giraldo from Economis, who will present the main findings of this study. Thank you.

11:08 - 11:47

Speaker 3

Thank you very much, Mafalda. Let me start this presentation about this document that, as you said, has been already published yesterday. And let me start with the three main research questions that were answered in this particular study. So the first research question is related to the implementation and the use of these two articles, 199a, which is the RCM or the reverse charge mechanism, and article 199b, which is the QRM or the quick reaction mechanism. The second research question that we answered was related to the effectiveness and the impacts of these two articles.