Analytics, Economics, Estonia, EU – Baltic States, Markets and Companies, Taxation

"The volumes of the five leading areas of sharing economy are forecast to grow 25-fold globally in ten years. We must deal with regulations favoring sharing economy in European countries already today, because people's preferences and habits are changing and this holds big economic potential," Michal said according to spokespeople for the Ministry of Economic Affairs and Communications.

Michal was accompanied at the meeting by Enn Metsar, head of the Estonian operation of the ridesharing service Uber.

"At the council we underscored the common positions of Uber and Estonia. In order for Europe to be able to compete with America and Asia digital single market must function in all member states and we must learn from the innovative approach that digital economy and the state are pursuing together," Metsar said.

Michal added that in many EU member states one of the issues causing negative attitudes toward services like this is taxation.

"Uber has been working closely together with the tax authority on the subject of taxes to develop a system for convenient collection of taxes that is as automatic as possible, which could be used by all participants in sharing economy in the future. If reporting related to enterprise is as minimal, transparent and automated as possible, it's good for starting a business," he said.