Global Daily Tax News, EU Lawmakers Call For Improvements To EU Tax Rules, (Oct 16, 2025)

Members of the European Parliament have adopted a report containing suggested reforms to simplify tax compliance and eliminate administrative hurdles in the EU's internal market, particularly for SMEs. The changes would also aid member states in thei ...

The report, drafted by Michalis Hadjipantela (EPP, CY), was approved by the European Parliament last week. It will feed into the ongoing work on legislative simplification, with a dedicated Commission proposal expected in early 2026.

The report urges the Commission to establish an EU Tax Data Hub to improve the automatic exchange of tax information and reduce the administrative burden. This would also help policymakers to identify and eliminate all instances of duplicative reporting to relieve taxpayers of double reporting obligations. The Hub would also serve as a single access point for tax administrations across the EU.

In addition, to encourage Europeans to invest their savings, rather than keep them in low-interest bank accounts, lawmakers called for simpler tax declaration procedures for savings and investment accounts.

The adopted text also says that streamlining the use of the Tax Identification Number across member states could help administrative cooperation and reporting.

The report calls on the Commission to assess and simplify the current VAT framework, the Directive on Administration Cooperation in Tax Matters, and the Anti-Tax Avoidance Directives.

The report also calls for enhanced collaboration between the European Public Prosecutor's Office and Eurofisc to strengthen intelligence-sharing, coordinated enforcement efforts, and cross-border investigations.

The report calls on the Commission to assess the benefits and drawbacks of a single set of EU-wide rules for innovative companies (the so-called 28th regime), which would also provide a single set of tax laws.

Finally, MEPs called for measures to deal with the tax issues facing trans-frontier workers and digital nomads, as well as simplifications to the R&D tax incentive schemes.

The rapporteur, Michalis Hadjipantela, said: "This Report is calling for a simpler, more transparent, and predictable EU tax framework that reduces complexity, administrative burden, and increases our competitiveness. With rising economic pressures and global competition, a simpler tax framework is vital. The report urges simplification, clearer rules, removal of inefficiencies, while upholding standards against tax evasion and aggressive tax planning."

"To boost competitiveness, we call for thorough impact assessments, greater use of digital tools to reduce compliance costs, standardized templates, improved coordination among member states, and revision of unnecessary rules that burden especially SMEs. A fair and business-friendly system is crucial for SMEs, which are the backbone of the European economy and essential for growth across member states, especially in smaller economies, like my country Cyprus. This will help ensure a competitive, resilient, and inclusive Single Market for all."

Global Daily Tax News, EU Lawmakers Call For Improvements To EU Tax Rules, (Oct 16, 2025)

The adopted text also says that streamlining the use of the Tax Identification Number across member states could help administrative cooperation and reporting.

The report calls on the Commission to assess and simplify the current VAT framework, the Directive on Administration Cooperation in Tax Matters, and the Anti-Tax Avoidance Directives.

Finally, MEPs called for measures to deal with the tax issues facing trans-frontier workers and digital nomads, as well as simplifications to the R&D tax incentive schemes.