Draft law amending the Value Added Tax Act and the Tax Procedure Act (462 SE) – second reading
Session: 15th Riigikogu, 4th session, plenary sitting
Date: 2024-11-06 17:25
Participating Politicians:
Total Speeches: 3
Membership: 15
Agenda Duration: 4m
AI Summaries: 3/3 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu discussed the draft law amending the Value Added Tax Act and the Tax Procedure Act in the second reading, initiated by the Government of the Republic. The draft law aims to incorporate directives from the Council of the European Union, which reduce the administrative burden on small businesses and modify the rules for VAT emergence and compliance when operating in different member states. It also clarifies that taxation applies to new constructions and the initial disposal of a building less than a year old is taxable. The first reading debate concluded on September 24th, and the deadline for submitting amendments was October 8th; no amendments were received, nor were opinions from interest groups. The opinion from the Ministry of Finance contained two proposals, and the committee chair, Annely Akkermann, emphasized that the proposals must be reviewed in cooperation with the Ministry of Finance. The two proposals in the draft law concern significant changes: 1) the proposed subsection 12 of § 191 of the Value Added Tax Act, which would have allowed the tax administrator to terminate special procedures regarding a person if they had not submitted information on time, is removed; and 2) some changes will be implemented in 2026 instead of 2027, and the integration of two separate declarations will be combined into one declaration. These changes are driven by technical development needs and the need for software enhancements. As the rapporteur and the leading committee confirmed, the committee members unanimously supported both proposals. Finally, it was decided to place the draft law on the plenary agenda on November 2nd, with a board decision on November 6th setting the agenda and the final vote on the draft law scheduled for November 13th, 2024.
Decisions Made 4
The steering committee unanimously supported both amendment proposals prepared by the Ministry of Finance (amendments no. 1 and no. 2).
The Riigikogu Presidium will place the bill on the agenda for November 6th (subscription to the agenda).
The reading of each other is concluded; the draft is concluded upon the conclusion of the second reading.
Once the second reading is completed, the draft will be placed on the agenda of the plenary session and a final vote will be held on November 13, 2024.
Most Active Speaker
The most active speaker was Mart Võrklaev (member of the finance committee); position: other (as a member of the finance committee).
Aseesimees Toomas Kivimägi
AI Summary
During the fifth item on the agenda, the government-initiated draft law amending the Value-Added Tax Act and the Tax Administration Act, No. 462, will be discussed in its second reading, and Mart Võrklaev, a member of the Finance Committee, will be invited to present.
Mart Võrklaev
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Finance Committee discussed on October 22 a draft bill that would transpose EU Council directives aimed at reducing the administrative burden on small businesses, would amend VAT, and would combine two separate tax declarations and the intracommunity turnover return into a single declaration, and decided to adopt the Ministry of Finance's proposals, to postpone its entry into force to January 1, 2027, and to place the draft bill on the plenary agenda on November 7 and the final vote on November 13, 2024.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi announced that two amendments submitted by the Finance Committee were taken into full account, the second reading of Bill 462 was completed, and the consideration of the fifth item on the agenda was exhausted.