EuroCommerce

Position Paper 6 November 2023 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• www.eurocommerce.eu The Union Customs Code Reform Introduction EuroCommerce is the voice for six million retail, wholesale, and other trading companies that engage in a full range of cross-border supply chain activities, both physically and within eCommerce. These range from SME entrepreneurs importing fashion items through to major corporates in cutting edge retail and wholesale. Consequently, EuroCommerce has a crucial interest in reforming EU customs into a simpler, more reliable structure that fully harnesses the opportunities of the single market, both within the EU and in reaching export markets.

…that fully harnesses the opportunities of the single market, both within the EU and in reaching export markets. As highlighted our position paper, ‘The Future of EU Customs For a modern, frictionless customs environment’, published in July 2022, EuroCommerce strongly supports ambitions to take the EU to the next level through making the Union’s customs processes simpler with more effective, efficient, and harmonised controls. In that respect, we welcomed the work of the ‘Wise Persons Group’ and many of their conclusions contained in the report, ‘Putting More Union in the European Customs: Ten proposals to make the EU Customs Union fit for a Geopolitical Europe’.

More Union in the European Customs: Ten proposals to make the EU Customs Union fit for a Geopolitical Europe’. We have argued for many years that a frictionless, predictable, and responsive customs environment is crucial for the competitiveness of EU business at home and on the global stage, especially for our members in omni-channel retail and wholesale sectors with extensive EU and international operations and global supply chains. Yet inconsistent interpretation and distortions in the application of the law at the operational level have been a persistent problem for EU business on the ground since 1993. Such inconsistencies remain and are, possibly, the greatest barriers to the EU’s economic vision for taking the Union to the next level. General The Union Customs Code provides a framework and structure for autonomous Member State authorities.

…next level. General The Union Customs Code provides a framework and structure for autonomous Member State authorities. EuroCommerce believes the timing for launching the Customs Reform Package is an exceptional and pivotal moment for the EU Single Market and businesses operating within it. The tone of the reform package is both ambitious and aspirational and advocates fundamental change. But such change must fundamentally enhance the current situation for all stakeholders. We cannot improve the conditions of one section to the inadvertent detriment of another. Whilst welcoming this reform, there are questions and concerns when it comes to details and timeline. We are especially concerned these proposals do not fully address the interests of SMEs nor some of the consequences to international trade.

…these proposals do not fully address the interests of SMEs nor some of the consequences to international trade. We note that the different elements and concepts were not tested with trade at the time the proposals were written. But we are keen to address this during the dialogue actively turning this work into functioning law in the Delegated and Implementing Acts and in the design of systems and processes. We recall our position paper where we discussed the legislative process at the working level. For a reform of this magnitude, we must ensure that timetables are challenging but realistic. The process should avoid situations where trade is forced ‘to make it work’ against their best counsel. Using pilot schemes and other testbed facilities should be employed to help move the process forward and allow access to some of the simplifications earlier.

…facilities should be employed to help move the process forward and allow access to some of the simplifications earlier. We strongly urge that trade is included as full partners on a default basis during the dialogue to achieve the desired outcomes on entry into force of the new processes and procedures. Otherwise, there are concerns the EU will continue to operate with processes and procedures that have just shuffled the problems around or created new operational issues. Ref. Ares(2023)7526198 - 06/11/2023 2 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Specific Comments on the Proposal 1. Trust & Check (T&C) Traders 1.1. We welcome plans to extend simplifications/ facilitations to all traders, especially SMEs, under the new ‘Trust & Check Trader’ facility, together with the ‘Datahub’ concept.

…to all traders, especially SMEs, under the new ‘Trust & Check Trader’ facility, together with the ‘Datahub’ concept. There is some support for these notions. But system security and business continuation are real issues for our members, especially as the proposals draw other agencies’ systems under the customs umbrella. 1.2. Obtaining T&C status should not be an onerous hurdle, especially for SMEs. It must be remembered that SMEs and micro-SMEs are really not just scaled down ‘large companies’. They are different, not just in turnover, and have different dynamics and challenges. Large companies have more resources at their disposal, with ‘Compliance’ offices or teams. So, gaining T&C status is likely to be easier for them than for a small/ medium sized businesses or micro-SMEs.

…teams. So, gaining T&C status is likely to be easier for them than for a small/ medium sized businesses or micro-SMEs. SME compliance operations are normally one person handling a raft of operational functions, i.e., business regulation such as REACH and now CBAM, national, local corporate and social taxes obligations, application of the customs code rules and often basic accounting requirements. Thus, it is not possible to compare like with like and they face unfair competition compared to their large business counterparts. 1.3. Yet, the conditions for becoming a T&C trader appear more difficult to meet than Authorised Economic Operator (AEO). T&C is mostly about giving customs real-time access to traders’ internal systems. In practice, this may prove a very difficult requirement for many, and especially micro and small traders, if not impossible and holds real cost implications.

…requirement for many, and especially micro and small traders, if not impossible and holds real cost implications. Visiting Special Report 13/2023 of the European Court of Auditors: "Authorized Economic Operators - A solid customs program with untapped potential and uneven implementation", is encouraged. 1.4. Adhering to the conditions and rules is paramount, regardless of profile. But SMEs need the simplest access and obligations to help them thrive. Yet they may still be disadvantaged and forced to use the most difficult and cumbersome standard processes for clearance simply because they are small businesses. That would be a serious and unintended consequence of the reform. The result could distort competition between SMEs and larger businesses that have access to economies of scale and bulk buying. 1.5.

…distort competition between SMEs and larger businesses that have access to economies of scale and bulk buying. 1.5. Therefore, the obstacles facing SME access to “Trust & Check” status should be examined, and methods to facilitate their access should be devised. A possible, transitional option may be to maintain AEO, together with current simplifications, which should not be controlled in a transactional manner as already intended. T&C status itself, could then be treated as a ‘next level’ simplification. In such a way SMEs could move up without making them worse off. 1.6. Additionally, a key component of a T&C authorisation is the propriety of an applicant and whether they have contravened any rules or had action taken against them. The definitions relating to propriety only reflect deliberate circumvention/ fraud and negligence committed by a trader.

…definitions relating to propriety only reflect deliberate circumvention/ fraud and negligence committed by a trader. We question if this covers all eventualities in the modern business world and whether current definitions fully reflect growing situations where businesses have acted in good faith and applied all reasonable due diligence but are victims of criminal activity and unwittingly contravene rules. Currently investigations can take place in the background and appear based on a presumption of guilt, not innocence and discriminate. It is therefore vital that the context of any transgression is duly considered, especially as customs is policing ever wider legislation, increasing the scope of what may be considered non-compliance. 3 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 1.7.

…3 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 1.7. In view of the strict requirements of Article 25, we believe the EU customs authorities should inform a T&C trader as early as possible when an investigation is opened on suspicion of circumvention of anti-dumping measures. This would offer the T&C trader the opportunity to actively engage in uncovering a fraud that has impacted on them unless the investigating authority has provable reasons to believe that the trust and check trader is actively complicit in such fraud. In our view, this would be a practical upgrade of the proposed trust and check trader mechanism. 1.8. Additionally, a ‘checklist of ‘due diligence’ efforts a T&C trader could take to safeguard against false origin statements would be useful.

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Position Paper July 2022 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• www.eurocommerce.eu The Future of EU Customs For a modern, frictionless customs environment Executive Summary Customs is a true bottom line for many EuroCommerce members. Retail and wholesale are inherently dependent on free global trade flows for goods and services. They are also the engine of global trade. Frictionless trade is essential for these businesses to create wealth for the EU in these challenging economic times and maintain the high number of jobs that retail and wholesale provide across the EU.

…these challenging economic times and maintain the high number of jobs that retail and wholesale provide across the EU. For these businesses to compete at their best, they need predictability and legal certainty based on fair, proportional and efficient rules that are effective for national authority controls and, designed to work with commercial systems, instead of legislative obligations in isolation that create heavy investment commitments. Customs is an amazingly wide area. The following paper is designed to highlight various issues that have been raised within EuroCommerce forums and, we hope, provide themes and concepts for wider debate that can form part of the future of the Union Customs Code.

…and, we hope, provide themes and concepts for wider debate that can form part of the future of the Union Customs Code. In particular, the paper focuses on: • The need for best practice in legislative creation and the most simple, effective processes and tools for both customs authorities and trade with the least impact on commercial operations, based on risk-based reforms and proportionality that address customs interaction with VAT and Excise. • Taking EU Customs Union to the next level and seizing global opportunities, especially those created through digitalisation and omnichannel commerce, by recognising a competitive and strong economic sector, working in an environment as frictionless as possible, creates wealth for the EU at this critical economic moment.

…working in an environment as frictionless as possible, creates wealth for the EU at this critical economic moment. • Addressing fundamental challenges, balancing customs controls and the facilitation of legitimate and compliant trade against a background of rising international import and export flows of goods, disrupted global supply chains, Brexit, inflation, the impact of the Ukraine conflict on energy and food supply and the unprecedented and real pressure on authorities and traders alike. The paper takes the opportunity to explore specific questions and makes recommendations, including: • The legislative process at the working level, where EU Institutions, national authorities and trade interface to examine and propose solutions to make legislation more responsive.

…national authorities and trade interface to examine and propose solutions to make legislation more responsive. • Strengthening AEO and the need to open it up by making the investment applying for the status is more proportionate to the benefits, through ensuring facilities really are process based instead of transaction and centralised clearance is fully implemented in practice as a priority. • Creating better synchronisation and alignments where there are overlaps between customs, VAT and Excise, such as through more coordination at the working level when creating legislation to make sure systems, where they do overlap, do not contradict each other’s aims.

…level when creating legislation to make sure systems, where they do overlap, do not contradict each other’s aims. • Ensuring effective collection of VAT and customs duties in the short, medium, and longer- term, whilst ensuring channel neutrality and a level playing field for all forms of trade and commerce business models, regardless of where they are established. Additional obligations Ref. Ares(2022)6398620 - 16/09/2022 2 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• placed on business must be proportional, effectively enforceable, taking into full account the economic reality of how businesses operate. • Addressing the uniform application of customs law and responding to application questions though engendering a more common approach and attitude, including trade in training and creating an arbitration mechanism.

…engendering a more common approach and attitude, including trade in training and creating an arbitration mechanism. EuroCommerce and its members have been in the vanguard of trade representation at the Trade Contact Group on customs. We remain committed to working with the European institutions, national authorities, and other stakeholders to help achieve an effective and innovative EU customs structure that reflects modern business practices and operations and facilities cross-border business in Europe and on the global market. 3 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Content 1. Executive Summary P.2 2. Issue P.4 3. Introduction P.4 4. Central Message P.4 Supporting Messages P.4 5. Overarching Principles P.5 6. General Observations P.5

Central Message P.4 Supporting Messages P.4 5. Overarching Principles P.5 6. General Observations P.5 7. Specific Comments P.6 i. Legislative Process P.6 Legislative Process: Recommendations P.8 ii. Authorised Economic Operator (AEO) P.9 Authorised Economic Operator (AEO): Recommendations P.9 iii. Customs, VAT and Excise P.10 Customs, VAT and Excise: Recommendations P.10 iv. eCommerce – Ensuring Effective VAT Collection P.10 eCommerce – Ensuring Effective VAT Collection: Recommendations P.11 v. eCommerce – Effective Customs Duty Collection by Data Sharing P.11 eCommerce – Effective Customs Duty Collection by Data Sharing: Recommendations P.12 vi. Uniform Application of Customs P.12 vii. Uniform application: Recommendations P.13 viii. Operational Application Questions P.13 Operational Application Questions: Recommendations P.14

Operational Application Questions P.13 Operational Application Questions: Recommendations P.14 8. Conclusions P.14 4 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 1. Issue The EuroCommerce position regarding the future of EU Customs in relation to the review of the application of the Union Customs Code (UCC), the Customs Action Plan and other related developments. 2. Introduction EuroCommerce is the voice for six million retail, wholesale, and other trading companies that engage in a full range of cross-border supply chain activities. These range from SME entrepreneurs importing fashion items through to major corporates in cutting edge retail such as eCommerce. EuroCommerce supports the EU’s ambition to make customs processes simpler and controls more efficient and harmonised.

EuroCommerce supports the EU’s ambition to make customs processes simpler and controls more efficient and harmonised. A frictionless and responsive customs environment is crucial for many of our members with extensive supply chains or operations across EU and international borders. Efficient and simple customs reduce costs and time to process border crossing operations, facilitates compliant international cross-border trade and minimizes delivery delays and landed costs for EU customers. Our members recognise the advances made by the EU Institutions and Member States since the introduction of the Customs Code in 1993. Since then, the application of customs has witnessed a growing relationship between the key stakeholders. In that respect, there has been an increasing understanding of the economic impact customs can have on competition and wealth creation.

…there has been an increasing understanding of the economic impact customs can have on competition and wealth creation. EU customs is now at another pivotal moment with the Customs Action Plan initiative, the current revision of the Application of the Customs Code, and the ‘Wise Persons’ Group’s work and report all featuring prominently in guiding the future direction of EU customs. In this respect this paper sets out the areas merchants and wholesalers believe should be prioritised during the forthcoming debates on the revision of the Union Customs Code. 3. Central Message The EU should strategically aim to lead the world with effective, yet innovative customs law, institutions, systems and tools that respond swiftly to business and economic developments, within a uniform, integrated and fully paperless customs environment as soon as possible.

…and economic developments, within a uniform, integrated and fully paperless customs environment as soon as possible. Supporting Messages: • EU Competitiveness is equally as important to the EU economy as effective customs controls because trade creates value and wealth, especially in new markets like eCommerce, • New approaches to customs clearance and customs controls should be addressed and piloted, with the accent on trade facilitation – a concept endorsed by the WTO - and eliminating burdens, when designing customs legislation, institutions, systems, and tools, • Although trade, EU Institutions, and national authorities are working more closely together due to the last Customs Code modernisation, an even closer partnership should be sought at every stage to ‘co-create’ a modern, frictionless customs environment for the future, • There should be more consistency between…

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Feedback: Commission Proposal 29/3/2023 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• www.eurocommerce.eu VAT in the digital age Response to the call for feedback EuroCommerce welcomes the opportunity to provide feedback on the VAT in the Digital Age proposal of the European Commission. We fully support the European Commission’s ambition to improve the VAT system through the use of digital tools, reducing VAT-related barriers for cross-border trade in the EU and making the VAT system better for businesses, while also becoming more resilient to fraud. We believe the VAT in the Digital Age proposal is well placed to embrace digitalisation, and effectively addresses the challenges faced by businesses (and in particular by SMEs) who trade, or have ambitions to trade, across EU borders.

…challenges faced by businesses (and in particular by SMEs) who trade, or have ambitions to trade, across EU borders. The key aspects from a commerce perspective are: • The expansion of the Union One Stop Shop (‘UOSS’) and the introduction of a transfer module allowing businesses to use one single VAT registration to report transfers of own inventory to locations across the EU, as well as the onward sales in those locations. We strongly encourage Member States to reach consensus on this pillar, as it would be a pivotal tool to reduce the need for costly, time-consuming and often prohibitive need for businesses wanting to sell products across the EU to maintain multiple VAT registrations. Amendments to the text of the proposal should be in line with the ‘north star goal’ of reducing the VAT administrative burden for businesses.

…of the proposal should be in line with the ‘north star goal’ of reducing the VAT administrative burden for businesses. To achieve this, it is key that there is no (or very limited) negative VAT cash flow impact when businesses opt to report through the UOSS and the transfer module. Any newly introduced obligations for businesses and for electronic interfaces facilitating the transfer and/or the sale of goods should be proportional and ensure a level playing field. • A shift to real-time digital reporting based on e-invoicing for businesses that operate cross- border in the EU and a more harmonised framework for domestic transactions. We acknowledge the motivation to introduce Digital Reporting Requirements (DRR), as they will play an important role in the simplification of the EU VAT system and the fight against VAT fraud.

(DRR), as they will play an important role in the simplification of the EU VAT system and the fight against VAT fraud. However, such measures need to take into account the substantial bureaucratic burden for companies, in particular for small and medium sized enterprises. 1. EU single VAT ID We are very supportive of the EU single VAT registration and we strongly encourage Member States to prioritise discussions on this pillar if necessary in order to reach consensus. We strongly encourage Member States to ensure that any amendments to the proposal are in line with the ‘north star goal’ to reduce the administrative burden on businesses. The One-Stop Shop (OSS) in place since 1 July 2021 has already been a great step forward in simplifying VAT compliance for cross-border scenarios for B2C businesses.

…2021 has already been a great step forward in simplifying VAT compliance for cross-border scenarios for B2C businesses. However, neither movements of retail inventory across EU countries for storage, nor the onward sale of that inventory are eligible for the OSS system. As such, businesses still face the burden of VAT registration requirements in every EU country of storage. As indicated in the Commission’s Impact Assessment, the extension of the OSS as detailed in the proposal is hence a great improvement, as it will reduce burdens on hundreds of thousands of businesses operating across Ref.

…is hence a great improvement, as it will reduce burdens on hundreds of thousands of businesses operating across Ref. Ares(2023)2276808 - 29/03/2023 2 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• many industries throughout the EU, allowing them to store inventory closer to their customers, enabling faster and more sustainable delivery, without the requirement to VAT register outside their home country. This simplification will allow businesses and especially SMEs to take full advantage of the Single Market. National governments will also benefit from a more competitive EU market, leading to a boost for tax revenues at a time where Member States are dealing with the social and economic effects of recent energy price spikes and geo-political tensions.

States are dealing with the social and economic effects of recent energy price spikes and geo-political tensions. Simpler VAT obligations also leads to higher levels of VAT compliance and level the playing field across all sizes of businesses. We would also expect that the simplification of EU VAT obligations will encourage businesses to onshore inventory within the EU prior to sale (instead of shipping directly from non-EU locations) and also reduce pressure on customs authorities, which should enhance tax authorities’ ability to audit and enforce. Additionally, to facilitate cross-border trade further, it should be explored to integrate additional provisions of rendered services in the UOSS, as for example intra-community passenger transport services, as well as domestic passenger transportation, when located in a different territory of the providers VAT head-office/establishment.

…passenger transportation, when located in a different territory of the providers VAT head-office/establishment. Furthermore, EuroCommerce would also welcome the inclusion of capital goods to the UOSS for the transfer of own goods. We realise the VAT issues at stake, especially regarding the deduction of input VAT. However, businesses that rent out their own goods to customers in other Member States still need to register for VAT abroad. Therefore, we would ask the Commission to try to find, together with businesses and Member States, a workable solution for the transfer of own capital goods from one Member State to another to be included in the UOSS.

…a workable solution for the transfer of own capital goods from one Member State to another to be included in the UOSS. Finally, we are supportive of the measure to make the existing Import One Stop Shop mandatory for marketplaces acting as deemed supplier, as this will improve the collection and simplify the audit and enforcement of VAT, while ensuring a level playing field. 2. Digital Reporting Requirements We acknowledge the motivation to introduce Digital Reporting Requirements (DRR), as they will play an important role in the simplification of the EU VAT system and the fight against VAT fraud. We welcome the ambition and effort of the proposal to mitigate the risk of businesses facing a patchwork of requirements across EU countries, which currently acts as an administrative barrier to cross-border trade and adds significant costs for businesses, especially SMEs.

…acts as an administrative barrier to cross-border trade and adds significant costs for businesses, especially SMEs. However, there are still certain points that need to be considered: • Mandatory e-invoicing: According to the proposal, Member States will be able to introduce the requirements of electronic invoicing for businesses as of January 2024, including the issuance, transmission and receipt in a structured electronic format. The new requirements would for example not allow PDF-invoices anymore. As many businesses still work with paper invoices, they need to undergo a major transformation step to adhere to the future digital requirements. If Member States are given the possibility to introduce the e-invoicing requirements as of January 2024, the available time frame for businesses to adapt would be extremely short.

…e-invoicing requirements as of January 2024, the available time frame for businesses to adapt would be extremely short. Businesses would need to substantially increase efforts (and time and financial resources) to adhere to the early introduction of e-invoicing. Prior to the proposal, it was envisaged to make electronic invoicing mandatory for businesses as of January 2028. Making DRR mandatory as of January 2028, would give businesses a more adequate implementation phase. Moreover, it is essential that already established invoicing standards (e.g. PDF, EDI-Standard EANCOM, SAP IDoc) can continue being used on an optional basis should a new EU standard be introduced. Furthermore, as the requirements are introduced at Member State level, the internal market could become fragmented if Member States implement them at different points in time.

State level, the internal market could become fragmented if Member States implement them at different points in time. For this reason, the proposal should not provide 3 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• for an optional introduction of e-invoicing from January 2024, but rather a mandatory introduction from January 2028. • Termination of e-invoicing approval requirement: It is viewed critically that beneficiaries will not be able to reject electronic invoices as of January 2024. Practical issues could arise, for example when the beneficiary has no means to receive the e-invoice. • Summary Invoice: Removing the practice of summary invoices will impact established commercial practices and cause costs for businesses, in particular SMEs, who will have to issue and ingest more invoices per day.

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Statement 6 August 2020 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• www.eurocommerce.eu EuroCommerce feedback to the Inception Impact Assessment on the review of the requirements for packaging and other measures to prevent packaging waste In the new Circular Economy Action Plan the Commission announced to review and reinforce the essential requirements for packaging laid down in Directive 94/62/EC on Packaging and Packaging Waste and reduce (over)packaging and packaging waste. This statement aims to summarise key points from the retail and wholesale sector on the essential requirements for packaging and support the Commission’s work in revising the Packaging and Packaging Waste Directive: • The review should be used to ensure a well-functioning internal market with fully harmonised rules on packaging.

…review should be used to ensure a well-functioning internal market with fully harmonised rules on packaging. • All packaging to be either reusable or recyclable and the uniform enforcement and interpretation of the essential requirements by the Member States should be strengthened to harness the full potential of the Internal Market. • The waste hierarchy should be better reflected and the existing European standards, which accompany the essential requirements, should be updated and new standards on output of recycling processes and quality of recycled material should be developed. • Robust criteria need to be applied to decide whether or not to use reusable packaging, this decision is usually taken on a case-by-case basis in our sector. Therefore, we think it could be difficult to regulate this issue via the essential requirements.

…basis in our sector. Therefore, we think it could be difficult to regulate this issue via the essential requirements. • Application-specific instruments, such as standards, are in our opinion better suited to reduce the complexity of packaging materials and potential consequences for issues like food waste need to be assessed before action is taken. • The issue of recycled content should be addressed via product-specific legislation or application- specific instruments and ongoing private and public-private initiatives devoted to developing recyclable and reusable packaging should be taken into account. • Green public procurement can play an important role in stimulating markets for secondary raw materials and can help to mainstream and accelerate the usage of sustainable packaging, therefore the Commission should strengthen and scale-up green public procurement. 1.

…usage of sustainable packaging, therefore the Commission should strengthen and scale-up green public procurement. 1. Use the review to ensure a well-functioning internal market with fully harmonised rules on packaging Ref. Ares(2020)4146768 - 06/08/2020 2 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• We agree with the objective stated in the Inception Impact Assessment that the outcome of this review of the essential requirements for packaging should be a well-functioning internal market through fully harmonised rules on packaging while tackling negative impacts on environment and health from packaging and packaging waste. Retailers and Wholesalers believe that for the circular economy to work, all the incentives and requirements from product design to the waste stage must be coordinated and aligned.

…to work, all the incentives and requirements from product design to the waste stage must be coordinated and aligned. Only with a true single market for waste recovery and more alignment and harmonisation of various EU regulations, from the Waste Shipment Regulation, the general minimum requirements for Extended Producer Responsibility schemes up to the end-of-waste criteria, it will be possible to ensure efficient waste management in the EU that will help to reach high recycling rates and the uptake of recycled material in new products.

…management in the EU that will help to reach high recycling rates and the uptake of recycled material in new products. Therefore, we fully agree that specific objectives of this initiatives should be to: • ensure free movement of packaging and packaged goods while enabling a well-functioning market for secondary raw materials (which should include free movement for packaging waste for sustainable recycling within the single market), • support compliance with recycling targets for packaging and, • reduce the amount of packaging waste generated in the EU. However, we strongly encourage the Commission to keep in mind that packaging serves multiple functions, from protecting the packed good, conveying product information to prolonging shelf-life and make it safe and easy to use for consumers.

…the packed good, conveying product information to prolonging shelf-life and make it safe and easy to use for consumers. While our sector supports the goal to reduce the amount of (packaging) waste that is generated and is actively changing and reviewing the packaging and products that are within our sphere of influence, we would like to point out that packaging not only is designed for the end-user, but has also an important role during transport and storage of a product. Therefore, it is not always possible to completely forego packaging. Furthermore, we believe that an assessment of the environmental impact of measures regarding packaging is necessary to avoid unintended consequences.

…assessment of the environmental impact of measures regarding packaging is necessary to avoid unintended consequences. For example, substituting lightweight plastic packaging for certain products with heavier glass packaging can lead to higher emissions and selling and transporting certain products like cucumbers without any packaging at all can lead to higher food losses and food waste. Both examples show that sustainability of packaging should be assessed on the basis of the net environmental impact over the whole life cycle of the product. Our members therefore prefer to look at this issue on a case by case basis in order to find the right balance between reducing as much packaging as possible and using as much packaging as is needed. 2.

…to find the right balance between reducing as much packaging as possible and using as much packaging as is needed. 2. The policy options should introduce harmonised rules on packaging that support the transition towards more recyling and a cirular economy EuroCommerce supports that the review of the essential requirements for packaging will include measures to amend the essential requirements to improve design for reuse and promote high quality recycling. We also welcome that additional measures to reduce packaging waste generation are planned.

…high quality recycling. We also welcome that additional measures to reduce packaging waste generation are planned. Regarding the measures that will also be examined in the context of this initiative, we would like to say the following: 3 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Requiring all packaging to be reusable or recyclable and providing an enforceable definition of ‘recyclable packaging’: We believe this is an important point, because uniform enforcement and interpretation of the essential requirements by the Member States are important for the Internal Market. By providing an enforceable definition the Commission can ensure that harmonised rules are implemented in all Member States in the same way.

…definition the Commission can ensure that harmonised rules are implemented in all Member States in the same way. This is a very important task for the Commission in the context of the review of the essential requirements, because we see with the introduction of eco-modulation of Extended Producer Responsibility (EPR) fees that more and more EPR schemes will start to use their own definition of recyclability. To avoid fragmentation and contradictions the Commission should ensure that the definition of recyclability is harmonised as much as possible. Furthermore, the waste hierarchy should be better reflected in the essential requirements and it should be reconsidered whether incineration and energy recovery are still relevant requirements and what additional measures could be taken to end landfill, through which valuable resources are getting lost.

…and what additional measures could be taken to end landfill, through which valuable resources are getting lost. Existing European standards which accompany the requirements should be also be updated. Therefore, the Commission should issue a mandate for CEN to work on new harmonised standards together with the relevant stakeholders and publish the references of the relevant harmonised standards in the Official Journal in a timely manner.

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Statement 6 January 2021 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• www.eurocommerce.eu EuroCommerce feedback accompanying the answers to the questionnaire of the public consultation on the review of the requirements for packaging and other measures to prevent packaging waste In the new Circular Economy Action Plan the Commission announced to review and reinforce the essential requirements for packaging laid down in Directive 94/62/EC on Packaging and Packaging Waste and reduce (over)packaging and packaging waste. EuroCommerce supports that the review of the essential requirements for packaging will include measures to amend the essential requirements to improve design for reuse and promote high quality recycling.

…include measures to amend the essential requirements to improve design for reuse and promote high quality recycling. We also welcome that additional measures to reduce packaging waste generation are planned. This statement aims to summarise key points from the retail and wholesale sector on the essential requirements for packaging and to provide feedback about the objectives and measures mentioned in the public consultation to support the Commission’s work in revising the Packaging and Packaging Waste Directive: • The review should be used to ensure a well-functioning internal market with fully harmonised rules on packaging. • All packaging to be either reusable or recyclable and the uniform enforcement and interpretation of the essential requirements by the Member States should be strengthened to harness the full potential of the Internal Market.

…requirements by the Member States should be strengthened to harness the full potential of the Internal Market. • The waste hierarchy should be better reflected and the existing European standards, which accompany the essential requirements, should be updated and new standards on output of recycling processes and quality of recycled material should be developed. • Robust criteria need to be applied to decide whether or not to use reusable packaging, this decision is usually taken on a case-by-case basis in our sector. Therefore, we think it could be difficult to regulate this issue via the essential requirements. • Application-specific instruments, such as standards, are in our opinion better suited to reduce the complexity of packaging materials and potential consequences for issues like food waste need to be assessed before action is taken.

…packaging materials and potential consequences for issues like food waste need to be assessed before action is taken. • The issue of recycled content should be addressed via product-specific legislation or application- specific instruments and ongoing private and public-private initiatives devoted to developing recyclable and reusable packaging should be taken into account. • The Commission should accelerate and support the development to use more recycled content in food packaging, while ensuring that safety of the packaged food is not compromised. Ref.

…use more recycled content in food packaging, while ensuring that safety of the packaged food is not compromised. Ref. Ares(2021)148996 - 07/01/2021 2 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • Green public procurement can play an important role in stimulating markets for secondary raw materials and can help to mainstream and accelerate the usage of sustainable packaging, therefore the Commission should strengthen and scale-up green public procurement. • The Commission should support the development of guidance and design guidelines to further improve flexible use of packaging designs, e.g. in E-commerce and during transport of products, to further reduce the use of packaging material. 1.

…designs, e.g. in E-commerce and during transport of products, to further reduce the use of packaging material. 1. On Objective 1: To increase level playing field and harmonization of requirements for products placed on the internal market We strongly agree with this first objective stated in the public consultation and believe that that the outcome of this review of the essential requirements for packaging should be a well-functioning internal market through fully harmonised rules on packaging while tackling negative impacts on environment and health from packaging and packaging waste. Retailers and Wholesalers think that for the circular economy to work, all the incentives and requirements from product design to the waste stage must be coordinated and aligned.

…to work, all the incentives and requirements from product design to the waste stage must be coordinated and aligned. Only with a true single market for waste recovery and more alignment and harmonisation of various EU regulations, from the Waste Shipment Regulation, the general minimum requirements for Extended Producer Responsibility schemes up to the end-of- waste criteria, it will be possible to ensure efficient waste management in the EU that will help to reach high recycling rates and the uptake of recycled material in new products. In particular this objective should aim to ensure free movement of packaging and products while enabling a well-functioning market for secondary raw materials, which should include free movement of packaging waste intended for sustainable recycling within the single market.

…which should include free movement of packaging waste intended for sustainable recycling within the single market. To ensure the latter this initiative should be aligned with the upcoming revision of the Waste Shipment Regulation. We support the intention of the Commission to revise the Waste Shipment Regulation to boost the Circular Economy and to keep waste in Europe to enable more recycling.

…the Waste Shipment Regulation to boost the Circular Economy and to keep waste in Europe to enable more recycling. 2. On objective 2: To limit and/or reduce the packaging waste generated across the EU We agree with the second objective to limit and/or reduce the packaging waste generated across the EU. Retailers and Wholesalers are actively changing and reviewing the packaging and composition of products that are within our sphere of influence and share the goal to reduce packaging and packaging waste as much as possible. However, we strongly encourage the Commission to keep in mind that packaging serves multiple functions, from protecting the packed good, conveying product information to prolonging shelf-life and make it safe and easy to use for consumers. Furthermore, we would like to point out that packaging is not only designed for the end-user but has also an important role during…

…role during transport and storage of a product. Therefore, it is not always possible to completely forego packaging. 3. On objective 3: To promote the use of reusable packaging whenever logistically feasible with a view to reduce packaging waste generation Robust criteria need to be applied to make a decision regarding the use of reusable packaging and an assessment of the environmental impact of measures regarding packaging is necessary to avoid 3 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• unintended consequences. For short supply chains reusable packaging may be the most environmentally friendly option, but many of our members deal also with longer and international supply chains.

…most environmentally friendly option, but many of our members deal also with longer and international supply chains. In such cases recyclable packaging is more advantageous, as life-cycle-assessments show that the environmental impact of recyclable packaging is better under these circumstances. For instance, substituting lightweight plastic packaging for certain products with heavier, reusable glass packaging can lead to higher transport emissions due to the increased load. Reverse logistics is a complex process which, depending on aspects such as the location of the factories that refill the reusable packaging or the density of the collection, sorting and cleaning facilities, can lead to greater transport distances. Trade-offs exist in this area and therefore the decision between reusable and recyclable packaging has to be taken on a case-by-case basis.

…this area and therefore the decision between reusable and recyclable packaging has to be taken on a case-by-case basis. This is the reason why the Commission should be aware that retailers and wholesalers decide whether or not to use reusable packaging depending on the suppliers and supply chains they are using. We therefore choose the "undecided" answer to the question of the third objective to take account of this fact. We think that the sustainability of packaging should be assessed on the basis of the net environmental impact over the whole life cycle of the product. We ask the European Commission to look at this issue on a case-by-case basis in order to find the right balance between reducing as much packaging as possible and using as much packaging as is needed. 4.

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Position Paper 24 March 2023 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• www.eurocommerce.eu EuroCommerce contribution to call for evidence on ‘Further specifying procedural rules relating to the enforcement of the GDPR’ Introduction EuroCommerce is the principal European organisation representing the retail and wholesale sector. It embraces national associations in 27 countries, sector associations and leading global players. Over a billion times a day, retailers and wholesalers distribute goods and provide an essential service to millions of business and individual customers. The sector generates 1 in 7 jobs, offering a varied career to 26 million Europeans, many of them young people.

The sector generates 1 in 7 jobs, offering a varied career to 26 million Europeans, many of them young people. It also supports millions of further jobs throughout the supply chain, from small local suppliers to international businesses. EuroCommerce is the recognised European social partner for the retail and wholesale sector. Feedback to the call for evidence • The EuroCommerce position regarding the Commission’s legal initiative on GDPR – Procedural rules on enforcement is overall positive. Our members consider harmonization of enforcement across Europe a good initiative, as in general clarification and streamlining of the processes and procedures are to be supported. The past years our members encountered the difficulties of working within different countries, with different Data Protection Authorities (DPAs) and their own procedures and interpretations.

…different countries, with different Data Protection Authorities (DPAs) and their own procedures and interpretations. As an example we can take the decision regarding the permitted usage or not of Google Analytics. Some countries already explicitly stated that it is forbidden to use, or that it is discouraged and even other countries have not yet made up an official statement on this matter. In this context it was also noted that some DPAs were in possession of information provided by the party under investigations, of which other DPA’s where not aware of; leading to delays in their investigation. This all leads to legal uncertainty and diminished trust in the GDPR’s capabilities to deliver. Therefor we welcome this initiative of harmonization that we expect to lead to more legal certainty and more trust in GDPR, attributing towards more compliancy in general.

…that we expect to lead to more legal certainty and more trust in GDPR, attributing towards more compliancy in general. It will also discourage the shopping between DPA’s in order to find the “most appropriate” for one’s objective. For our members, with entities in multiple EU countries, it will allow them to work with those harmonized procedures as a common denominator, creating EU global intergroup company procedures. On the other hand, we would like to stress that in the enthusiasm to make the procedures more transparent, open to participation and faster to conclude, that the outcome cannot jeopardize e.g. that legal certainty, by too quickly publishing decisions, before they are irrevocable, before all appeal possibilities have been exhausted.

…by too quickly publishing decisions, before they are irrevocable, before all appeal possibilities have been exhausted. • On the problems, identified by the Commission, that need addressing our members agree on the necessity of tackling them, but they also identified missing elements As we support the already listed problems, we also want to provide the Commission with some additional thoughts: Ref. Ares(2023)2152157 - 24/03/2023 2 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• o A common understanding and interpretation by the DPA’s of the legislation, definitions, .. are a pre-requisite for a harmonized enforcement; o European Data Protection Board Guidelines are not always followed by DPAs when enforcing GDPR (E.g. International Data Transfers, concept of Legitimate interest, cookies & tracking technologies).

GDPR (E.g. International Data Transfers, concept of Legitimate interest, cookies & tracking technologies). Harmonized procedures should take these elements into consideration and deal with them in order to make that the harmonized procedures really will improve the current situation. Next to the important elements already on the list, our members also see some missing topics that were found hindering them the past years i.e.: o A more consistent application by the DPAs of EDPB guidelines and positions when assessing national cases ; o Procedures on the involvement in the proceedings of 3rd parties.

…and positions when assessing national cases ; o Procedures on the involvement in the proceedings of 3rd parties. Third parties being other (joint) data controllers or data processors, next to the Data Subjects and responsible legal entity; o Procedural rights that the parties are entitled to, such as the need to specify the right of access to the documentation of the proceedings by the parties; o Harmonization regarding the amicable settlement (resolving complaints in a non- contentious way); o Clarification on the investigatory powers of the supervisory authorities regarding competence pursuant to Article 55 and 56. The Commission could also introduce a mechanism, where the investigated company or maybe even a group of interested companies could trigger a coordination procedure or some sort of alignment procedure between the supervisory authorities.

…could trigger a coordination procedure or some sort of alignment procedure between the supervisory authorities. In our view this could lead to certain questions being clarified much faster on EU level. • As a way to improve the current situation, the Commission has put forward their ‘high-level policy options’ on which our members have following considerations: o Creating procedures with clear, defined deadlines will increase transparency and allow organizations to plan ahead, but on the other hand setting deadlines should take into account the potential complexity of a case, the needed means at the DPA side to comply to these deadlines as well as the caution to be incorporated that speed of delivery not overrules the quality, given rise to appeal procedures that negate all the work done.

…that speed of delivery not overrules the quality, given rise to appeal procedures that negate all the work done. o Providing tools to promote cooperation, early in the investigation process, should support any kind of cross border cooperation and not e.g. burden or hinder settlements. o The right to be heard should cover both the factual and legal elements raised in the investigation, as it is enshrined in Article 41 of the Charter of Fundamental Rights of the EU. The right to be heard should also be granted by the EDPB in the situations that the EDPB intervenes to resolve disputes between DPAs ex article 65 GDPR. This is specifically important because there is no opportunity to comment on the LDPAs final draft decision before it is submitted to the EDPB.

…because there is no opportunity to comment on the LDPAs final draft decision before it is submitted to the EDPB. o Access to information or sharing of information by the parties involved should be bound to confidentiality, preventing disclosure to other parties or using the information for other purposes. In general, deviations within procedures at the EU Member State level should not be allowed. 3 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• The high-level policy options put forward, should embed specific and harmonized procedural rights that parties are entitled to, clear and harmonized rules on amicable settlements and definition of the investigative powers of the DPAs.

…entitled to, clear and harmonized rules on amicable settlements and definition of the investigative powers of the DPAs. • As the Commission looks as well to the EDPB “list of procedural aspects that could benefit from further harmonisation at EU level”, as a potential basis of procedures to address , we are of the opinion that o It is a very comprehensive list, addressing the issues that should ideally be clear in these procedures, that can help to regulate the aspects necessary for harmonization of the procedural aspects indicated. o Some precaution might be needed, in order not to overdue when looking for a common denominator. E.g. when formalizing admissibility, dismissal/rejection etc. of complaints, there might be a risk for a more strict interpretation, blocking more complaints than wanted.

…etc. of complaints, there might be a risk for a more strict interpretation, blocking more complaints than wanted. • Our members, being retail and wholesale organization of different sizes, national or multinational regional scope, encounter the consequences of non harmonized enforcement procedures in the same way as many organizations in other sectors. An example of one of our members can be illustrative. A retailer being active in multiple EU countries, with separate controlling entities in each county, has streamlined their processes (e.g. processes for which anther group company acts as processor) in every group company. At the moment of a central data protection incident or breach affecting several of these controllers in several EU countries in the same way, each controller will be subject to a different procedure depending of the involved DPA.

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…10 February 2026 Avenue des Nerviens 85 | B-1040 Brussels | www.eurocommerce.eu Contribution to the European Commission Public Consultation on the Directives on Administrative Cooperation (DAC) Framework This submission responds to the European Commission's public consultation on the Directives on Administrative Cooperation (DAC) framework. The Directives on Administrative Cooperation represent a cornerstone of the EU's efforts to enhance tax transparency and combat tax evasion. However, the effectiveness of these directives depends critically on their practical implementation across Member States. This submission is structured in two parts: Part I articulates fundamental principles that should guide the evolution of the entire DAC framework, drawing on practical implementation experience across multiple directives.

…the evolution of the entire DAC framework, drawing on practical implementation experience across multiple directives. Part II provides targeted observations on specific DAC regimes, including cross- framework coherence considerations, and highlights practical implementation challenges and opportunities for simplification. Beyond operational considerations, the future evolution of the DAC framework should also reflect the need for coherence between different reporting regimes, proportional transparency obligations, and consistent interpretation across Member States. The cumulative effect of multiple reporting layers risks creating duplication, legal uncertainty, and administrative inefficiencies without necessarily improving audit outcomes.

…duplication, legal uncertainty, and administrative inefficiencies without necessarily improving audit outcomes. A forward-looking DAC framework should therefore seek consolidation where appropriate, clarify interpretative divergences, and ensure that reporting obligations remain aligned with their practical enforcement value. EuroCommerce considers it essential that any future evolution of the DAC framework be guided by the following fundamental principles: Harmonisation of administrative procedures The current fragmentation of administrative procedures across Member States creates significant compliance burdens for operators conducting cross-border activities. A truly effective DAC framework requires standardised processes for registration, notification, and reporting that apply uniformly across all jurisdictions.

…standardised processes for registration, notification, and reporting that apply uniformly across all jurisdictions. This harmonisation should extend beyond substantive requirements to encompass procedural timelines, technical specifications, and communication protocols. Without such standardisation, the administrative costs of compliance risk undermining the policy objectives of the directives themselves. Proportionality and administrative feasibility Reporting obligations must be designed with due consideration for operational realities and the principle of proportionality. Requirements that appear straightforward in legislative text can prove extraordinarily burdensome in practice, particularly for entities managing large volumes of transactions or data subjects.

…in practice, particularly for entities managing large volumes of transactions or data subjects. The Commission should ensure that compliance obligations are achievable within reasonable timeframes and with reasonable resources, and that they do not impose disproportionate costs relative to the tax transparency benefits achieved. Technological modernisation and security standards In an increasingly digital economy, tax reporting infrastructure must meet contemporary standards for efficiency, security, and interoperability. Manual processes and outdated technical systems undermine both compliance efficiency and data security. The DAC framework should establish minimum EU-wide technical and security standards, including mandatory data encryption, API-based submission capabilities, real-time validation mechanisms, and bulk processing functionality.

…data encryption, API-based submission capabilities, real-time validation mechanisms, and bulk processing functionality. Such modernisation would benefit both reporting entities and tax administrations. Ref. Ares(2026)1490890 - 10/02/2026 www.eurocommerce.eu | Transparency Register ID: 84973761187-60 2 Clarity and legal certainty Ambiguity in legislative requirements generates inconsistent interpretations across Member States, creating legal uncertainty for compliant operators and potentially undermining the level playing field the directives seek to establish. The Commission should prioritize clear, unambiguous drafting of requirements, supplemented by comprehensive guidance that addresses practical implementation questions. Where interpretation issues emerge post-implementation, swift clarification through official guidance or legislative amendment is essential.

…issues emerge post-implementation, swift clarification through official guidance or legislative amendment is essential. Flexibility for corrections and data quality Perfect data accuracy at the point of initial submission is often unattainable when dealing with large volumes of dynamic information. A pragmatic DAC framework should incorporate mechanisms for timely corrections and amendments without imposing excessive administrative penalties. Such flexibility ultimately serves the directives' objectives by enabling reporting entities to improve data quality and completeness over time, rather than being locked into initial submissions that may contain inadvertent errors or omissions. Realistic implementation timelines Effective compliance requires adequate time for system development, process implementation, and data collection.

…compliance requires adequate time for system development, process implementation, and data collection. Deadlines that require decisions or submissions based on incomplete information undermine data quality and create unnecessary compliance risk. Implementation timelines should account for the operational realities of data collection cycles, system development requirements, and the need for complete information before reporting obligations crystallize. Competitiveness Evolving global tax initiatives must be assessed in light of economic competitiveness, implementation feasibility, and regulatory coherence. Alignment or integration between related frameworks should be prioritised to avoid duplicative reporting obligations and inconsistent policy signals.

…related frameworks should be prioritised to avoid duplicative reporting obligations and inconsistent policy signals. STRUCTURAL ALIGNMENT OF DAC4 (CBCR) AND DAC9 FRAMEWORKS Issue: The coexistence of DAC4 country-by-country reporting and DAC9 implementation measures creates significant duplication in data collection, reporting cycles, and administrative oversight, imposing unnecessary compliance burdens on affected entities. This structural misalignment results in repetitive reporting of substantively similar information across multiple frameworks without commensurate transparency benefits. Furthermore, proposals for public disclosure of country-by-country reporting data raise concerns regarding interpretive clarity and proportionality.

…disclosure of country-by-country reporting data raise concerns regarding interpretive clarity and proportionality. Without adequate contextualization, publicly available information may be misinterpreted by stakeholders lacking technical expertise in international tax matters, potentially leading to distorted perceptions of legitimate tax positions and creating commercial disadvantage for compliant entities. The evolving global economic environment and divergent implementation timelines across jurisdictions compound these challenges, particularly regarding Pillar Two-related measures, raising questions about regulatory coherence and competitive neutrality. Recommendation: EuroCommerce therefore recommends a coordinated approach between the DAC4 and DAC9 frameworks. It would significantly reduce compliance burdens while preserving transparency objectives.

DAC4 and DAC9 frameworks. It would significantly reduce compliance burdens while preserving transparency objectives. Consideration should be given to aligning reporting structures, harmonising data requirements, and exploring partial consolidation mechanisms to eliminate duplicative reporting obligations. With respect to public disclosure of country-by-country reporting data, any transparency measures should be balanced against proportionality principles and accompanied by sufficient contextualisation to ensure accurate interpretation by non-specialist stakeholders.

…and accompanied by sufficient contextualisation to ensure accurate interpretation by non-specialist stakeholders. Where implementation of Pillar Two- related measures diverges across jurisdictions, temporary extensions or phased approaches should be www.eurocommerce.eu | Transparency Register ID: 84973761187-60 3 considered to support regulatory coherence, operational feasibility, and competitive neutrality during the transition period. DAC6 – INTERPRETATIVE CONSISTENCY AND PROPORTIONAL REPORTING Issue: DAC6 remains one of the most operationally complex components of the administrative cooperation framework. Its hallmark-based reporting system requires intermediaries and taxpayers to assess whether cross-border arrangements fall within broad and sometimes ambiguously defined criteria, creating significant legal uncertainty and compliance challenges.

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Call for Evidence 4/5/2022 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• www.eurocommerce.eu VAT in the Digital Age EuroCommerce is the principal European organisation representing the retail and wholesale sector. It embraces national associations in 27 countries and 5 million companies, including leading global players and many small businesses. Retail and wholesale is the link between producers and consumers. Over a billion times a day, retailers and wholesalers distribute goods and provide an essential service to millions of business and individual customers. The sector generates 1 in 7 jobs, offering a varied career to 26 million Europeans, many of them young people. EuroCommerce is the recognised European social partner for the retail and wholesale sector.

…many of them young people. EuroCommerce is the recognised European social partner for the retail and wholesale sector. We thank the Commission for the opportunity to participate in the call for evidence concerning the initiative on VAT in the Digital Age. We applaud the European Commission for setting out this ambitious VAT reform plan, in particular the work towards a single EU VAT registration. A Single EU VAT Registration is a solution our Members – and European businesses more broadly, particularly small and medium-sized enterprises (SMEs)– are eager to see implemented. Single VAT Registration will be a huge simplifier to reduce the need for costly and time-consuming multiple VAT registrations that are today still required despite the expansion of the VAT One-Stop Shop (OSS) scheme on 1st July 2021.

…that are today still required despite the expansion of the VAT One-Stop Shop (OSS) scheme on 1st July 2021. The importance of this matter to our Members is also highlighted in a dedicated webpage on this topic that we created to raise awareness of the need for this reform: https://simplify-vat.eu/ The extension of the VAT One-Stop Shop (OSS) on 1st July 2021 has provided a fundamental and concrete simplification of a complex VAT system. There is now a significant opportunity to build on this progress by expanding the OSS to all goods transactions where the seller is not located in the EU country of taxation. Businesses that sell remotely should be able to report VAT on their entire EU logistics chain through a single portal.

Businesses that sell remotely should be able to report VAT on their entire EU logistics chain through a single portal. In particular, it is key that the reform extends to, (1) cross-border movement of own inventory across the EU (with no or limited cash-flow cost for businesses), and (2) domestic B2C sales of goods by a seller that is not established in that EU country. It should also be allowed to report domestic B2B sales. Without this change, the EU VAT system will continue to disadvantage European businesses and put administrative borders across the Single Market. The millions of SMEs at the heart of the EU economy feel this most acutely, limiting their growth. Businesses should be able to choose to store inventory close to their customers to shorten delivery times, without incurring additional VAT registration and compliance costs.

…close to their customers to shorten delivery times, without incurring additional VAT registration and compliance costs. However, based on today’s rules, business have to VAT register in every country in which they store stock, even before a final sale has taken place. In doing so, a business must file an average of 13 documents to complete one VAT registration process, wait an average of 100 days to receive a VAT number, submit up to 60 VAT & statistical filings per country per year, and spend many thousands of Euros in compliance costs. The benefits of a Single VAT Registration extend to tax authorities, customs authorities, national treasuries, businesses, consumers and the environment. • Tax authorities will benefit from increased compliance, and facilitated reporting and auditing of cross- border goods movements.

…will benefit from increased compliance, and facilitated reporting and auditing of cross- border goods movements. • National governments will benefit from a more competitive EU market and increased trade, leading to additional tax revenues. • Businesses, particularly SMEs, will gain greater access to intra-EU trade, be more competitive and incur fewer tax compliance fees. Apart from the e-commerce sector, benefits extend to other sectors as well Ref. Ares(2022)3428315 - 04/05/2022 2 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• such as toll manufacturing, leasing of moveable property, wholesaling, manufacturing with movement of machinery etc... • Customers will be able to access more competitive prices, faster delivery and a greater choice of goods.

…etc... • Customers will be able to access more competitive prices, faster delivery and a greater choice of goods. • The advantages of a Single VAT Registration also extend to environmental concerns. For example, a regime covering pan-EU inventory storage in e-commerce would encourage bulk inventory placements close to customers, which have cause considerably lower CO2 emissions than orders individually shipped for long distances1. • As well as being green, bulk shipments from third countries also reduce burdens on national customs authorities compared to individual packet shipments. Given the wide-ranging benefits, we urge the European Commission and the Member States to publish and adopt legislative proposals for a Single VAT registration, including pan-EU inventory placements and onward sales, at the earliest possible opportunity.

Single VAT registration, including pan-EU inventory placements and onward sales, at the earliest possible opportunity. Contact: Harald Past - +32 2 737 05 97 – [email protected] Transparency Register ID: 84973761187-60 1 “A direct air e-commerce shipment from a distribution centre in Asia causes 25 times more CO2e than an e-commerce shipment from a mass storage facility in the EU which first sources products by sea, before shipping them to end consumers by road.” Wyman, O. (2020) Is E-commerce Good for Europe? Economic and Environmental Impact Study. Executive Summary, p. 8. Available at: https://www.oliverwyman.com/content/dam/oliver-wyman/v2/publications/2021/apr/is- ecommerce-good-for-europe-english.pdf

originalus šaltinis (PDF) ↗

Statement 24 April 2023 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• www.eurocommerce.eu Feedback regarding the proposal for a regulation on packaging and packaging waste We thank the Commission for the opportunity to provide feedback concerning the proposal for a regulation on packaging and packaging waste. This paper is the EuroCommerce feedback for the consultation about the adopted act. Retailers and wholesalers support reducing the complexity of packaging materials and (re)designing packaging to allow for better recycling. The sector has already started to change and review the packaging and composition of its own brand products.

…recycling. The sector has already started to change and review the packaging and composition of its own brand products. This proposal is urgently needed to update the main rules all packaging placed on the EU market needs to fulfil, including recyclable packaging, recycled content in packaging and waste reduction. We are keen to work with the Commission under the regulation to reach the objectives.

…in packaging and waste reduction. We are keen to work with the Commission under the regulation to reach the objectives. To realise the full potential the Packaging and Packaging Waste Regulation can bring, we believe that a number of steps will be important: • Ensuring a high level of harmonisation on issues like sorting instructions which is key to safeguarding the free movement of goods in the Single Market while ensuring the availability of more sustainable packaging • Investment in and upscaling of public and private waste sorting and recycling infrastructure to ensure that recycled material is available in sufficient quantities at an affordable price • An EU one-stop-shop for Extended Producer Responsibility to make it easier for businesses to handle waste and use it as secondary raw material • Establishing a forum similar to the Ecodesign Forum in the Eco-design for Sustainable…

…key to harness the full potential of the Single Market and reduce the administrative burden for companies.

…will be key to harness the full potential of the Single Market and reduce the administrative burden for companies. • Accelerating development and approval of recycling technologies to use more recycled content in food packaging, while ensuring the safety of the packaged food • Ensuring that the new rules are consistent with the draft Eco-design for Sustainable Products Regulation and the upcoming proposal to revise the Waste Framework Directive Contact: Nick Dornheim - + 32 2 2 737 05 82 - [email protected] Transparency Register ID: 84973761187-60 Ref. Ares(2023)2888691 - 24/04/2023

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