As a response to the hurdles caused by the restrictions imposed in relation to COVID-19, the European Commission (EC) published a press release on 8 May 2020 proposing a deferral of the reporting deadlines under the EU Directive on Administrative Cooperation (known as DAC 6) by three months.
The proposal includes the following:
The EC has made it clear that the rules will come into force as planned on 1 July 2020 and this is simply a deferral. What this means in practice is that all transactions which should have been reported will still need reporting, albeit at a later date.
The EC proposes to have the power to defer the deadline by a further period of three months, only in case the exceptional circumstances in relation to the pandemic persist.
The proposal needs to be approved from the Economic and Financial Affairs Council (Ecofin) and the European Parliament before it can take effect. The three months’ extension provided by the proposal is a maximum period, therefore Member States have the discretion to allow a shorter deferral period. Yet, such capacity seems to be only theoretical, especially considering that some Member States are supporting that there should be an outright extension of six months.