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The digital taxation package was discussed at an EU meeting, Minister Mihály Varga said in Brussels. He called the compromise that led to the package’s conclusion one of the Hungarian presidency’s great successes. The regulation adopted at Tuesday’s Council meeting allows businesses to register digitally in one EU Member State, and from then on the rules on VAT (value-added tax) will apply to them in the same way everywhere.
In addition to the decision on the tax dossier, the politicians discussed the EU’s statistical reporting and data processing, among other issues. Furthermore, the findings of the Draghi report on taxation were also on the agenda. “Competitiveness is the most important priority of the Hungarian EU presidency and we feel that the Draghi report contains some points that will help clarify this,” the Minister noted.
At a press conference following Tuesday’s meeting, the Hungarian politician said that after two years of negotiations, a compromise had been reached on the VAT in the Digital Age (ViDA) package, which was adopted.
The aim of the legislation is to make it easier and faster for businesses to move around European markets.
is here! @EUCouncil reached an important step towards modernising the EU’s VAT systems today.#ViDA will help:
Member States to act fast against VAT fraud
Businesses by streamlining VAT registration processes
https://t.co/FK6AN4ms4V pic.twitter.com/02IPQFkHFy— EU Tax & Customs (@EU_Taxud) November 5, 2024
Mihály Varga added that the different tax rates create opportunities for circular fraud, but the amendment adopted will help to filter it out.
Moreover, he noted that the adoption at the Council meeting of an amendment to the EU’s statistical system, allowing for more accurate monitoring and more transparent use of energy data, was an important step forward.
The ministers also took stock of the implementation of national plans linked to the EU recovery funds, he said, noting that the European Commission was still withholding significant resources from Hungary.
We have received only 8% of the funds we are entitled to, which is far below the use of resources by other Member States.”
In the context of the US presidential elections, Varga called for strategic calm. “All EU Member States are following this election closely, as there are clear differences between the Democrat and Republican candidates in terms of their programs. What will the economic relationship be like, how will the new US administration deal with the Ukraine-Russia war? We are looking forward to the outcome of this election from that perspective,” he pointed out.
The Minister noted: “Hungary is convinced that protectionist bidding will lead nowhere.” “If we always raise protective tariffs against each other or impose punitive taxes on each other’s services and products, it will only make cooperation more expensive for everyone. That is not the solution, partnership is the way forward,” he said.
The politician also stressed that
Europe’s task is to focus on improving its competitiveness so that it can compete with the United States or the Asian region.
“If competitiveness improves, we can put ourselves in a position where we are taken seriously, at least at the negotiating table. Unfortunately, if competitiveness remains weak, then Europe can expect little good from the US administration, no matter who is in charge,” the Finance Minister concluded.
Via MTI; Featured image via Facebook/Varga Mihály
