Policy

Taxation

National governments are responsible for raising taxes and setting tax rates. The EU does coordinate some national tax rules and tax rates, where differences might discourage people from buying and selling in other EU countries. The EU also promotes co-operation between its member countries for tackling tax avoidance and tax evasion, eliminating discrimination cases, and reducing compliance burdens.

Page Contents

Policies

  • Personal tax

    While mainly the responsibility of the individual EU countries, the EU helps coordinate some personal tax policies like inheritance, pensions and savings.

  • Company tax

    The EU has rules to prevent double taxation of cross-border companies and initiatives to make the tax treatment of business fairer and fight tax avoidance.

  • Excise duties

    EU rules for excise duties on alcohol, tobacco and energy exist because differences can impede cross-border trade and distort competition.

  • Tax fraud and tax evasion

    The EU provides a framework for member countries to tackle cross-border tax fraud and tax evasion in a coordinated way.

  • Tax cooperation and control

    The EU provides a legal framework for cooperation, information exchange and mutual assistance between EU tax authorities.

  • VAT rules

    The EU sets some basic rules for national VAT, including minimum rates, to ensure the free flow of goods and fair competition in the internal market.

  • Taxation of the financial sector

    A proposed tax on financial transactions is envisaged by 11 EU countries, to ensure the financial sector makes a fair contribution to public finances.