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After years of negotiations, nearly 140 countries from around the world rallied behind a historic overhaul of international corporate tax rules in October 2021. Amidst the implementation process by countries worldwide, including EU Member States, President Donald Trump withdrew United States (US) support for the global agreement, creating uncertainty about its future development. The Subcommittee on Tax Matters (FISC) is due to hold a public hearing on this topic on 15 May 2025.

Over the last ten years, the EU has taken several key measures to combat aggressive corporate tax planning, aiming to curb the billions in revenue losses suffered by Member States. However, the variety and breadth of the measures introduced have raised concern about their administrative complexity and overall effectiveness. The Subcommittee on Tax Matters will hold a public hearing on this topic on 15 May 2025.

Value added tax (VAT) is a crucial revenue stream for both EU and national budgets. However, substantial losses resulting from domestic and cross-border VAT fraud make its enforcement an essential priority amid growing financial demands. Fraudsters, who are regularly part of organised criminal networks, exploit weaknesses in the VAT system, causing government revenue losses worth billions of euros. Over the years, the EU and its Member States have taken a variety of measures to close VAT loopholes ...

Equality between men and women is one of the key foundational principles of the European Union. Despite much progress, however, significant gaps persist between men and women regarding employment opportunities and income levels. Taxation can either mitigate or exacerbate these gender inequalities. On 13 January 2025, the European Ϸվ's Subcommittee on Tax Matters (FISC) is due to hold a public hearing on the topic.

Around 100 million people in the EU– or 1 in 4 adults – have some form of disability. Addressing both fiscal support and public service accessibility for people with disabilities is crucial for a more inclusive and equitable tax system across the EU. On 3 December 2024, the European Ϸվ's Subcommittee on Tax Matters (FISC) will host a public hearing on this topic as part of the European Ϸվ's Disability Rights Week.

VAT in the digital age

Briefing 22-10-2024

Value added tax (VAT) is one of the key revenue raisers in national budgets, accounting on average for almost a fifth of all tax revenue collected in the EU; and yet, sizeable amounts of VAT revenue are lost to fraud. Moreover, VAT rules place a considerable administrative burden on businesses. On 8 December 2022, to help fight VAT fraud and reduce this burden, the European Commission tabled a three-part proposal for a directive on VAT in the digital age. The proposal has three main objectives. The ...

Behavioural taxes, such as those levied on tobacco, alcohol, and fossil fuels, serve as instruments to influence consumer behaviour, as well as to collect revenue. By levying these taxes, governments seek to discourage the consumption of products that contribute to (significant) negative externalities, such as health costs or climate change. However, the design and implementation of such taxes can be quite complex, with volatile revenue collection. Additionally, public acceptance and consumer responses ...

For her second mandate, European Commission President-elect Ursula von der Leyen has prioritised strengthening EU competitiveness and simplifying existing EU legislation. One focus here is the regulatory burden in taxation within the EU and its potential evolution. On 17 October 2024, the European Ϸվ's Subcommittee on Tax Matters (FISC) is due to hold a public hearing on simplicity and transparency in tax policy.

The rise of e-commerce has required changes to the system of value-added tax (VAT) to ensure that the rules allow for smooth and fraud-proof transactions between customers and sellers. The major overhaul of the VAT rules for e-commerce in 2021 introduced a series of important simplifications for businesses, such as the creation of an import one-stop shop (IOSS). The IOSS allows businesses to declare and remit VAT on all their business-to-consumer (B2C) distance sales of imported goods across the ...

While shell companies – company entities that have no or minimal economic activity – can serve useful commercial and business functions, they are sometimes abused by companies or individuals for aggressive tax planning or tax evasion purposes. To ensure sustainable public finances under the exceptional circumstances imposed by the COVID-19 pandemic, in December 2021 the European Commission presented a directive on preventing shell companies from misusing their structure for tax purposes ('Unshell ...