The Committee on Economic and Monetary Affairs of the European Parliament (ECON) has adopted several of Maltese MEP Alfred Sant’s proposed changes to the European Commission text on a special VAT Exemption Scheme for small enterprises across the EU. The scheme updates existing arrangements by which small and medium sized enterprises are exempted from certain VAT obligations that are administratively burdensome for them. It also extends the exemption system to SMEs that begin to export.
The Maltese MEP’s amendments focused on facilitating the operations of small enterprises in small economies similar to those in Malta and Gozo. They served to strengthen further the measures already found in the Commission’s draft intended to lighten the compliance burdens on small enterprises across the EU and to help them engage more in EU cross-border trade due to the extension of the exemption scheme.
MEP Alfred Sant is Shadow Rapporteur on behalf of the S&D Group on this Committee.

ECON supported MEP Sant’s proposal that only maximum turnover thresholds for small enterprises should be set for exemption. This should be done for the sake of flexibility and to ensure that it is possible for Member States to set appropriate lower thresholds proportional to the size and the needs of their economy.

ECON also adopted Alfred Sant’s amendment in favour of SMEs that exceed the ceiling set for exemption in a given year. The Commission proposed that as soon as this happens, the exemption ceases. Sant proposed that this would happen if the ceiling is exceeded two years in a row to counter the impact of seasonal or irregular factors on demand.

“This would allow small enterprises in certain sectors, such as the construction sector, which are confronted with seasonal factors and irregular demand, to adjust more flexibly to a loss of their VAT exemption status due a growth in their sales revenues,” remarked the Maltese MEP.

MEP Sant stressed that making the VAT process simpler for SMEs should by no means allow for facilitating abuses or disappearance of tax money.

The report is expected to be discussed at the Plenary of the European Parliament in September.

Maltese Version – ECON TADOTTA L-PROPOSTI TA’ ALFRED SANT DWAR L-INTRAPRIŻI Ż-ŻGĦAR FL-EKONOMIJI Ż-ŻGĦAR

Il-Kumitat tal-Affarijiet Ekonomiċi u Monetarji tal-Parlament Ewropew (ECON) adotta bosta miżuri proposti mill-MEP Alfred Sant u li emendaw il-proposti tal-Kummissjoni Ewropea dwar il-VAT Exemption Scheme – L-Iskema tal-Eżenzjoni tal-VAT għall-intrapriżi żgħar fl-Unjoni Ewropea kollha. L-iskema taġġorna l-arranġamenti eżistenti għall-intrapriżi żgħar u medji għall-eżenzjoni tagħhom minn ċertu obbligi ta’ VAT li amministrattivament huma ta’ piż għalihom. Is-sistema teżenta wkoll lil SMEs li jibdew jesportaw.

L-emendi tal-Ewroparlamentari jagħmluha aktar faċli biex l-intrapriżi joperaw f’ekonomiji żgħar bħal dawk ta’ Malta u Għawdex. Huma servew biex isaħħu aktar il-miżuri misjuba fl-abbozz tal-Kummissjoni biex itaffu l-piżijiet ta’ konformita` fuq intrapriżi żgħar madwar l-UE u biex jgħinuhom jinvolvu ruħhom aktar fil-kummerċ ma’ pajjiżi membri oħra tal-UE permezz tal-estensjoni tal-iskema ta’ eżenzjoni.

Alfred Sant huwa x-Shadow Rapporteur għal Grupp tal-S&D f’dan il-kumitat.

Il-Kumitat ECON appoġġja l-proposti ta’ Sant li jistipulaw li l-fatturat massimu biss għandu jiġi stabbilit għall-eżenzjoni għal intrapriżi żgħar. Dan għandu jsir għal raġunijiet ta’ flessibilita` u biex jiġi żgurat li l-Istati Membri jkunu jistgħu jistabbilixxu limiti minimi xierqa proporzjonali għad-daqs u l-ħtiġijiet tal-ekonomija tagħhom.

ECON adottat ukoll l-emendi ta’ Alfred Sant favur l-SMEs li jaqbżu l-limitu ffissat għall-eżenzjoni f’sena partikolari. Il-Kummissjoni pproponiet li malli dan iseħħ, l-eżenzjoni tieqaf. Sant ippropona li dan jiġri jekk il-limitu jinqabeż b’sentejn wara xulxin sabiex jiġu miġġielda l-impatti irregolari jew fatturi staġjonali fuq l-intrapriżi.

“Dan jippermetti lil intrapriżi żgħar li qegħdin f’ċerti setturi, bħas-settur tal-kostruzzjoni li jaffaċċja domanda irregolari u fatturi staġjonali, biex jaġġustaw b’mod aktar flessibbli għat-telf tal-istatus tagħhom ta’ eżenzjoni tal-VAT.” saħaq Dr Sant.

L-Ewroparlamentari qal li s-simplifikazzjoni tal-proċess tal-VAT għall-SMEs ma għandhiex tħalli lok għal abbużi u diskrepanzi fuq il-flus mit-taxxi.

Ir-rapport mistenni li jiġi diskuss fil-Plenarja fil-Parlament Ewropew f’Settembru.