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Federation of European Movers Associations

FEDEMAC

FEDEMAC was founded in 1959 (originally CODEMAC).

Lobbying Activity

Response to Evaluation of Administrative Cooperation in Direct Taxation

23 Mar 2018

The VAT system in the EU is still difficult to apply, especially for small and medium-sized enterprises. In the case of cross-border intra-Community transport, it is extremely expensive for these companies to pay VAT in another Member State. In particular, when it comes to removals for consumers, removal companies face considerable difficulties in paying VAT in the country of departure. This will at least make the freedom of movement, which is promoted by the EU, more difficult. Smaller companies don’t have the resources to build up the necessary expertise not only through their own country's tax system, but also for up to 27 other countries. If companies do not succeed in registering for fiscal administration in other countries, often at great expense, very cost-intensive fiscal representatives must be used. The fact that these no longer have to be used formally does not alter the fact that companies have no other option because of the complexity of the tax systems. Since relocations are not plannable individual transactions, companies cannot estimate whether and to what extent taxable transactions will continue to be carried out in a Member State in the future. But in many countries tax declarations must be made regularly once a company is registered, even if there are no more taxable transactions. For many years now, FEDEMAC has been calling on the EU to introduce a genuine "one-stop-shop" for VAT payments. FEDEMAC appeals at the EU to take the chance now to introduce a one-stop-shop system. The consequences for a one-stop-shop not only for internet related transactions are: Member States must set up clearing systems in their financial administrations to enable them to pass on, in both administrative and monetary terms, the VAT incurred in another country. In future, companies would be able to declare and pay the VAT of the country of departure of a move in their home country with less administrative costs. The administrative burden for companies would be considerably reduced. Costs for consumers and other clients who are not companies would be reduced significant. The freedom to provide services is implemented under the same tax conditions for all competitors. Distortions of competition would be eliminated. Member States could improve their own tax revenues. The up to date thresholds of each Member State are more a problem than a solution regarding the VAT: Transport services are not always included. Member States cannot effectively check whether a supplier from another Member State has exceeded the threshold triggering the tax liability at the time of turnover. Companies that complain that they are still below the threshold have cost advantages, which lead to a competitive advantage at least in the amount of the value-added tax, especially in the case of sales with customers who are not eligible for input tax deduction. Consequences of this situation in practice (in different forms): Businesses provide removal services in other Member States by involving fiscal representatives to pay VAT, with the result that the service will be considerably more expensive for the consumer. Businesses avoid the provision of removal services in other Member States for reasons of taxation. This shall also apply if a removal transport has already taken place in the Member State concerned and the way back must then take place as an environmentally harmful empty truckload.
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Response to Targeted revision of EU consumer law directives

18 Jul 2017

FEDEMAC is pleased that the EC is looking at revising EU consumer law especially in regards to online-platforms. Those have changed greatly the way business is done, facilitating business between consumers and businesses. However, they have also created much unfair practices between businesses and has in some cases lead to a decrease in services standards and consumer protection. Large investments from donor have help certain businesses operating at a loss for a long period of time, thus being able to trade at much lower prices and pushing competitors out. Lower prices, however, have also in some cases brought down the standards of services provided to the end user, who are often left with no contact for complaints and claims. Due to the lack of legislation and oversight, platforms can be places where black labour can thrive without the customer’s knowledge. Transparency is a prerequisite to ensure that consumers are not contributing to the black economy. And lastly, the platform should be held accountable in regards to the subcontractors hired as customers are often unaware of the entity actually providing the service.
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