Would applying Home State Taxation only to small and medium-sized enterprises not discriminate against companies that are not allowed to benefit from the scheme?
The Commission does not believe so. Most Member States already have special advantageous tax rules for SMEs and for these there seems no discrimination issue at national level. Moreover, the fundamental advantage provided by Home State Taxation is a reduction of compliance costs, not lowering of the tax liability. Such a non-monetary advantage is generally not considered as giving rise to discrimination.
