On Tuesday 3 June, European experts discussed the simplification of tax legislation at a conference organised by the European Tax Adviser Federation (‘ETAF’). Everyone agreed that de-cluttering does not mean deregulation.
Maria Elena Scoppio, Director of Indirect Taxation and Tax Administration at the European Commission (DG TAXUD), reported that analysis work had already begun internally, particularly in the area of value added tax (VAT).
In March, the European Finance Ministers asked the Commission to put in place an action plan to simplify and reduce the tax burden (see EUROPE 13597/11).
Mrs Scoppio pointed out that the recent adoption of the legislative package on VAT in the digital age (ViDA) was already a step in this direction. But a study will soon be launched, in the medium term, to see whether further simplification is possible.
Excise duties also represent an area of potential simplification, as there is no one-stop shop. However, as these duties relate to sensitive goods such as alcohol and tobacco, this work could prove more difficult. “There would be less fraud with a one-stop shop. We will see if there is an appetite for such legislation”, she said.
In December 2024, 16 Member States called on the Commission to modernise tobacco taxation legislation (see EUROPE 13541/13).
The European official pointed out, moreover, that tax complexity also stems from the implementation of legislation by the Member States, particularly in federal States where tax policy is partly the responsibility of the regions.
Tax cooperation is also an area that offers scope for reducing red tape. MEP Michalis Hadjipantela (EPP, Cypriot) and his colleagues in the European Parliament are currently working on an own-initiative report calling for greater tax cooperation and confidence between Member States (see EUROPE 13609/18). He wants to tackle tax evasion and thus increase revenue.
For Johan Langerock, tax policy adviser to the Greens/EFA Group in Parliament, we need more Europe and more harmonisation.
Henrik Paulander, Head of Sector ‘Administrative Cooperation’ at DG TAXUD, explained that the rules governing tax cooperation were currently being evaluated, in particular the ‘DAC 6’ Directive, which has been criticised (see EUROPE 13465/26). (Original version in French by Anne Damiani)