Tax problems faced by EU citizens when active across borders within the EU

Taxation

In its Communication on Removing cross-border tax obstacles facing EU citizens (COM/2010/769) the European Commission announced its intention to launch a debate on ways to simplify tax compliance in cross-border situations.

Individuals exercising cross-border activities within the EU are often confronted with different/ additional tax issues compared to individuals who are active only within a single EU country. The issues that can arise may include complex administrative procedures in one or both countries involved that make tax compliance difficult; language barriers; different interpretations of tax treaties by the EU countries involved; difficulties in accessing relevant tax information; and difficulties in identifying officials responsible in national tax administrations. The problems often stem from the fact that two or more EU countries may have the right to tax the income in a cross-border case. Even if procedures exist in theory to prevent double or multiple taxation, the application of those procedures may be very complicated in practice.

Some EU countries have adopted measures to address these cross-border tax problems. Examples of such measures include:

• close cooperation between tax administrations in neighbouring countries
• tax web-sites common to two or more countries
• availability in several languages of the most frequently used tax forms
• the provision of tax-related information in several languages, and
• specialised departments in national administrations to deal with cross-border tax issues.

Although these measures are good, more may need to be done and other countries may still need to take steps in this direction.

The Commission services are launching this public consultation with a view to inviting all interested parties to contribute to the exercise of providing information on current problems and identifying good practices applied by some EU tax administrations that go some way towards addressing these problems. This will allow the Commission to come up with solutions such as to recommend that all EU countries adopt certain good practices.

This public consultation will be complemented by work of an expert group which will assist the Commission services in identifying tax problems and drawing up a list of good practices that could be relevant and realistic for all EU tax administrations. The expert group will in the course of its work examine the responses to this public consultation.

We welcome contributions from citizens, organisations and public authorities.

• If you are answering this consultation as a citizen, please click TAXUD-CITIZENS-TAX-CITIZENec [dot] europa [dot] eu (here )to submit your contribution.
• If you are answering this consultation on behalf of an organisation, please click TAXUD-CITIZENS-TAX-ORGANISATIONec [dot] europa [dot] eu (here )to submit your contribution.
• If you are answering this consultation on behalf of a public authority, please click TAXUD-CITIZENS-TAX-AUTHORITIESec [dot] europa [dot] eu (here)to submit your contribution.

Received contributions will be published on the Internet. It is important to read the specific privacy statement attached to this consultation for information on how your personal data and contribution will be dealt with..

COM(2010)769 final : Communication from the Commission to the European Parliament and the Council on removing cross-border tax obstacles facing EU citizens.

COM92011)712 final: Communication on Double Taxation in the Single Market

COM(2011) 864 final : Communication from the Commission to the European Parliament and the Council on Tackling cross-border inheritance tax obstacles within the EU.

2011/856/EU : Commission Recommendation regarding relief for double taxation of inheritances.

SEC(2011) 1488 final : Commission staff working paper on Non-discriminatory inheritance tax systems: principles drawn from EU case-law.

COM(2012)756 final : Communication on Strengthening the Single Market by removing cross-border tax obstacles for passenger cars

Council Directive 2008/8/EC: amending Directive 2006/112/EC as regards the place of supply of services

Directorate-General for Taxation and Customs Union, Unit D2 Direct Tax Policy and Cooperation

TAXUD-CITIZENS-TAX-CITIZENec [dot] europa [dot] eu (TAXUD-CITIZENS-TAX-CITIZEN[at]ec[dot]europa[dot]eu)

European Commission
Directorate-General for Taxation and Customs Union
Unit D2 – Direct Tax Policy and Cooperation
Rue de Spa 3
B-1049 Brussels
Belgium

57 responses were taken into account (amongst them 56 with authorisation to publish).