It is more important than ever for Member States to have secure tax revenues, so they can invest in the people and businesses who need it most.
To achieve this, fair, efficient and sustainable taxation is key. That is why on 15 July 2020, the European Commission adopted a new Tax Package. The Package reinforces the fight against tax abuse, helps tax administrations keep pace with a constantly evolving economy and eases administrative burdens for citizens and companies. It also ensures improved cooperation with non-EU countries, and strengthens the Commission’s support to developing countries.
The Tax Package contains three separate but complementary initiatives. They set out the path towards fairer, simpler and modernised tax systems.
The Tax Action Plan is a set of 25 initiatives the European Commission will implement between now and 2024 to make taxation fairer, simpler and more adapted to modern technologies. The Tax Action Plan sets out measures to:
The Commission has proposed to amend the Directive on Administrative Cooperation, to extend the EU tax transparency rules to digital platforms. Member States will automatically exchange information on income generated by sellers on digital platforms. This will not only allow national authorities to identify situations where tax should be paid, but will also reduce the administrative burden placed on platforms, who have to deal with several, different national reporting requirements.
The Communication on Tax Good Governance aims to further strengthen how the EU can promote transparency and fair taxation. This includes a reform of the Code of Conduct and improvements to the EU list of non-cooperative jurisdictions. The Communication also outlines the EU’s approach to assisting developing countries in the area of taxation, in line with the 2030 Sustainable Development agenda.