The digital transformation poses both opportunities and challenges in the area of taxation.
The digitalisation of the economy has spurred a review of the aging international tax framework which could lead to consensus on a global tax reform next year.
The EU is also implementing new rules to improve VAT payments related to eCommerce. However, it remains to be seen whether major platforms not established in the EU will comply to ensure a level playing field with the thousands online platforms established in the EU.
The uptake of e-government solutions by the public sector in EU Member States hold the potential to improve tax collection while new digital tools can make tax compliance much easier for small businesses. The use of AI and machine learning could play an important role.
Finally, taxation is also crucial for startups to succeed, as for instance according to authoritative observers ”Europe's stock options muddle is handing America a big advantage”.
Fair taxation of all businesses, should ensure that resources, including talent, are not diverted from the European ecosystem.
Ivan Štefanec MEP and EIF Steering Committee member