TAX COLLECTION and CONTROL

Commission reports on efficiency of administrative cooperation between tax authorities

Commission reports on efficiency of administrative cooperation between tax authorities

The European Commission has today published a series of recommendations for Member States on how to better work together towards better direct tax and VAT collection for national budgets. In particular, the results show that investment in digital and IT systems, as well as investment in human resources, will be crucial if EU countries want to improve their public finances.

Today's reports highlight the overall positive impact of the EU-wide cooperation between tax administrations on tax collection, but also show that Member States have to deploy more resourcesto improve tax collection - an issue which, for VAT alone, can lead to losses for national budgets of up to €150bn a year.

The Commission has this year already put forward far-reaching reforms of the VAT system to create a definitive VAT system and to create a single European VAT area that is simpler and fraud-proof. Cooperation between countries to recover lost taxesshould also be improved, the report says, and countries should make better use of new data that is being collectedas part of the major reforms on information exchange – an accomplishment which should give the fight against tax avoidance a major boost in the EU.

The Commission will now take these findings forward with Member States to see how they can be addressed.

Report on VAT collection and control procedures
Report on Mutual tax recovery assistance(+ the accompanying Staff Working document)
Report on administrative cooperation in the field of direct taxation (+ the accompanying Staff Working document)
Feasibility study on the improvement of the identification of taxpayers through tax identification numbers (TINs)