He told MPs in the House of Commons that political agreement on the issue was reached at the last meeting of European Finance Ministers – ECOFIN – (held on 22 January) without discussion.
Brown said the proposed EU Directive and Regulation ‘make welcome changes to the rules governing the taxation of digitised products, so as to correct certain distortions of competition’.
He added: ‘During the negotiations the UK successfully secured an explicit commitment, which now features in the Directive, to a comprehensive electronic solution for the taxation of such items which will treat EU and non-EU businesses on an identical basis.’
Last week the European Union Council of Ministers refused to back down, following pressure from Washington, over its plans to reform VAT charged on digital products.
EU plans for VAT on digital products will favour EU-based suppliers over competitors in the US.
Making Tax Digital will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs
MHA MacIntyre Hudson has partnered with cloud accounting software provider Xero ahead of the government’s requirement for digital records
The drive towards a fully digital tax regime is an admirable one, but mandation is simply wrong, according to one of the UK's most senior tax technology practitioners - Paul Aplin
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