It was complemented by the signing of an amendment protocol of 12 July 2016 providing for the automatic exchange of information between Monaco and eu Member States on the financial accounts of non-residents from 2018. The information will be collected from 1 January 2017 (see also the agreements on tax issues). In addition, the Franco-Monegasque agreements signed on 18 May 1963 and 26 May 2003 provide that VAT in Monaco will be applied and collected on the same basis and at the same rates as in France and provides for the creation of a tax-sharing account collected in France and Monaco. As a result, Monaco is part of the European VAT system. journaldemonaco.gouv.mc/Journaux/2020/Journal-8512/Ordonnance-Souveraine-n-8.334-du-5-novembre-2020-modifiant-les-annexes-A-et-B-de-l-Accord-monetaire-conclu-le-29-novembre-2011-entre-l-Union-europeenne-et-la-Principaute-de-Monaco Like other small third countries in Europe, Monaco has negotiated with the European Community to reach agreement on measures equivalent to those provided for by the Council`s 2003/48/EC Directive on the Taxation of Savings Income in the form of interest payments. This agreement, signed on 7 December 2004, came into force on 1 July 2005. 4. The Principality of Monaco adopts measures equivalent to those of the Member States for the implementation of the acts of the Union listed in Appendix B, necessary for the implementation of this agreement. The Joint Committee on Article 13 examines, in the context of a procedure to be set up by the Joint Committee, the equivalence between the measures adopted by the Principality of Monaco and the measures adopted by the Member States for the application of the above acts. This agreement does not require the ECB or national central banks to include the financial instruments of the Principality of Monaco in the list of securities eligible for monetary policy operations of the European Central Bank System. In November 2013, the Commission adopted a report concluding that the negotiation of one or more association agreements was the most feasible of the two options. In the report, he also set out the main principles behind the negotiations: respect for common values, the need to ensure the homogeneity and proper functioning of the internal market and the consideration of the specificities of countries with a small territorial dimension (COM Report (2013) 793).
In December 2013, the Council asked the Commission and the High Representative, on the basis of this report, to submit a recommendation by the end of April 2014 on the opening of negotiations with the three countries in order to conclude one or more association agreements. In its conclusions, the Council reaffirmed in particular that «the closer association of Andorra, Monaco and San Marino with the EU is also in the EU`s interest. It should help to fill in the gaps and overcome inconsistencies in relations, which are currently fragmented and divergent from one country to another. In addition, increased participation by the three countries in the single market could have a positive, albeit limited, economic impact on the EU, particularly in terms of employment in neighbouring regions and cross-border economic activity. (document 16075/13).