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Taxation and Customs Union

Reports & Studies - Archive

A database of reports and studies that inform our work on taxation

The European Commission regularly publishes reports and studies to better inform our work on taxation. These documents may be written by the EU and its bodies and/or by independent consultants. 

All documents below are shown in reverse chronological order of publication. Find the latest reports & studies (2015-2023).

2009

VAT Gap

The study analyses the gap between the amount of VAT due and the amount received in 25 Member States. 

Study to Quantify and Analyse the VAT Gap in 25 EU Member States – October 2009 

Tax Merger Directive 

The study provides a comprehensive overview of the implementation of the Tax Merger Directive (Council Directive 90/434/EEC as amended) in the 27 EU Member States. The survey's purpose is to enable the Commission to assess the need for further EU-wide action in this area. 

The main finding of the survey is that most Member States have correctly transposed the Tax Merger Directive, but it has been under-utilised because the corporate law allowing cross-border mergers has not been in place in many countries up to recently. The findings and conclusions of the study are those of the authors and do not reflect the position of the European Commission. 

Study on the Implementation of the Tax Merger Directive – January 2009 

VAT Invoicing Rules 

A study on the VAT invoicing rules contained in the VAT Directive (2006/112/EC). 

It looks at the four principal areas of invoicing: the requirement to issue an invoice, the content of an invoice, electronic invoicing and the storage of invoices. Its aim is to map the existing legislation in all Member States, analyse burdens on business and Member States' control needs, and provide recommendations for a more harmonised and modern set of VAT invoicing rules. 

Study on the VAT Invoicing Rules Contained in the VAT Directive – January 2009 

2008

VAT for Environmentally Friendly Products 

The study examines the potential use of reduced VAT on environmentally friendly goods and the current application of reduced VAT on energy consumption by households. 

The analysis is carried out in the context of EU policy approaches on climate change and energy security, including interaction with other policy instruments at the EU and national levels. The focus is on what role, if any, VAT rate policy should play in underpinning these objectives. 

Reduced VAT for Environmentally Friendly Products – December 2008 

Tax Incentives for Energy-efficient Appliances 

The study examines four products with high energy-saving potential: refrigerators, washing machines, boilers and compact fluorescent lamps. 

A cost-benefit analysis is done in comparative perspective so that the costs and benefits of energy taxation and regulatory measures are calculated for the same products. Data from four different Member States (Denmark, France, Italy and Poland) are used in the analysis. 

Study on the Costs and Benefits Associated with the Use of Tax Incentives to Promote the Manufacturing of More and Better Energy-efficient Appliances and Equipment and the Consumer Purchasing of these Products – December 2008 

Business Tax in Europe 

Using an applied general equilibrium model for Europe, the study explores the economic implications of an allowance for corporate equity (ACE), a comprehensive business income tax (CBIT) and a combination of these two systems. 

The key trade-offs in designing ACE and CBIT in the presence of tax distortions are illustrated at various decision margins of firms (financial structure, investment, profit allocation and location). 

Alternative Systems of Business Tax in Europe: An Applied Analysis of ACE and CBIT Reforms – November 2008 

Effective Tax Levels in the EU 

The project 'Effective Tax Rates (ETRs) in an Enlarged European Union' extends the scope of the calculation of ETRs conducted under the Company Tax Study (2001) by adding the 12 new EU Member States. It is based on the methodology used for the calculation of ETRs as set out by Devereux and Griffith (1999, 2003). 

The study includes a focus on the effects of tax reforms in the EU27 for the period 1998-2007 and their impact on the level of taxation for both domestic and cross-border investment, as well as a partial analysis of SME partnerships. 

Effective Levels of Company Taxation within an Enlarged EU – November 2008 

Differential VAT for Environmental Purposes 

The study looks at the potential impacts of changing current VAT rates to align them with environmental goals in specific cases: domestic energy supply, food and dairy products, insulation materials, white goods and boilers. 

It finds that the suitability of differential VAT as a policy instrument differs greatly across products, in particular depending on the nature of the market failure in consumer behaviour which the VAT rate would be trying to correct. 

The Potential Benefits of Using Differential VAT for Environmental Purposes – June 2008 

VAT Fraud 

In its Communication on the need to develop a coordinated strategy to fight against fiscal fraud (COM/2006/254) the Commission suggested a series of measures to improve the exchange of information. 

One of these measures is the reduction of timeframes for the collection and exchange of information on intra-Community transactions. This measure was pointed out by the Council in its conclusions of 5 June 2007 as a priority measure to implement. This study analyses the possible impact of this measure on businesses active in intra-Community trade. 

Study on the Possible Impact of Measures Envisaged for Fighting VAT Fraud (Timeframes) - January 2008 

2007

Fighting VAT Fraud 

In its Communication on tax fraud (COM/2006/254) the Commission suggested a series of measures to improve the exchange of information. One of these measures was the collection and exchange of more detailed information on intra-Community transactions. 

In the discussions in the anti-tax fraud strategy expert group, some Member States indicated that they were in favour of increased information exchange. This measure was listed by the Council in its conclusions of 5 June 2007 as one of the measures for further discussion. This study analyses the possible impacts of this measure on businesses active in intra-Community trade. 

Study in Respect of Introducing a Change in the Requirements to the Recapitulative Statements – November 2007: 

VAT Reverse Charge Mechanism 

One of the debated solutions to combat certain types of VAT fraud is the introduction of a general reverse charge mechanism in the VAT system. The European Commission has therefore decided to explore the impact of the introduction of such a system in certain Member States. 

Study in Respect of Introducing an Optional Reverse Charge Mechanism – July 2007 

VAT on Labour Intensive Services 

A reduced VAT rate can be applied to certain specified labour-intensive services, but only for an experimental period so as to test its impact in terms of job creation and combating the 'black' economy. 

VAT on Labour Intensive Services 

Reduced VAT Rates 

The study examines the theoretical and empirical merits of four different arguments for reduced VAT rates: two efficiency-based arguments (Can reduced VAT increase efficiency by increasing productivity or by reducing structural unemployment?) and two equity-based arguments (Can reduced VAT enhance equity by improving the income distribution or by making certain products more accessible to the entire population?). 

The study examines the impact of reduced VAT rates and of derogations, not only for locally supplied services but also more globally. The effects on income distribution, the informal economy and compliance costs for businesses were also considered. 

Study on Reduced VAT Applied to Goods and Services in the Member States of the European Union – June 2007 

2006

Tax/benefit Systems in the EU 

The project 'Tax/benefit Systems and Potential Growth of the EU' offers an in-depth analysis of tax/benefit policies in five broad themes, where these policies play a crucial role in terms of key EU goals: employment; corporate taxes under tax competition; productivity growth and convergence; macroeconomic policies under a single monetary policy; and environment and climate change. 

The project was carried out by seven European economic policy research institutes within the European Network of Economic Policy Research Institutes (ENEPRI). 

Tax/benefit Systems and Growth Potential of the EU – December 2006 

VAT Exemption for Financial and Insurance Services 

This study aims to increase understanding of the economic effects of VAT exemption for financial and insurance services. 

The views expressed in the report are solely those of the authors and do not necessarily reflect the views of the European Commission, nor bind the Commission. The analysis and conclusions presented are the sole responsibility of the authors. 

Economic Effects of VAT Exemption for Financial and Insurance Services – November 2006 

Interest and Royalty Directive 

This survey aims to provide a comprehensive overview of the implementation of the Interest and Royalty Directive and application of Article 15(2) of the Agreement between the EU and the Swiss Confederation in the Member States covered. 

Survey on the Implementation of the EC Interest and Royalty Directive – June 2006 

2005

Energy Taxation 

The objective of this study is twofold: to analyse how the implementation of the EU energy tax policies will affect the EU and its Member States, and to explore how energy tax policies can contribute to climate policy objectives in the enlarged EU. 

Impacts of Energy Taxation in the Enlarged European Union – July 2005 

VAT Collection and Control Procedures 

Fifth Report under Article 12 of Regulation (EEC, Euratom) No 1553/89 on VAT Collection and Control Procedures – January 2005 

Administrative Cooperation Against VAT Fraud 

Report on the Use of Administrative Cooperation Arrangements in the Fight Against VAT Fraud – April 2004 

2004

Taxation in Research and Development 

This study provides an overview of the tax treatment of research and development expenditure in the 25 Member States, Japan and the US. It describes both the treatment under the normal tax systems and under any specific incentive schemes. 

Tax Treatment of Research and Development Expenditure – December 2004 

Tax Cooperation 

This study evaluates the economic effects of different scenarios of tax cooperation in the enlarged European Union in the framework of a General Equilibrium Model. 

It develops scenarios for a common corporate tax base applicable in all EU Member States for full harmonisation of tax bases and tax rates and for the exchange of savings information in the context of personal income taxation. 

Economic Effects of Tax Cooperation in an Enlarged European Union – October 2004 

Tax Consolidation for the European Company 

A study analysing potential competition and discrimination issues relating to a pilot project for an EU tax consolidation scheme for the European Company statute (Societas Europaea). 

Study on Analysis of Potential Competition and Discrimination Issues Relating to a Pilot Project for an EU Tax Consolidation Scheme for the European Company Statute (Societas Europaea) – August 2004 

Administrative Cooperation Against VAT Fraud 

Report on the Use of Administrative Cooperation Arrangements in the Fight Against VAT Fraud – April 2004 

2003

Taxation of the European Company (SE) 

This survey provides an overview of taxation of the European Company (SE) in 15 EU Member States. 

Survey on the Societas Europaea – September 2003 

  • Country Reports: AT / BE / DK / FI / FR / DE / GR / IE / IT / LU / NL / ES / PT / SE / UK 

Energy Taxation 

A study on the economic and environmental impacts of energy taxation. 

The Macroeconomic Evaluation of Energy Tax Policies within the EU, with the GEM-E3-Europe Model – February 2003 

2002

Fiscal Measures to Reduce CO2 Emissions 

Model-based calculations constitute the core output of this study. The calculations assess the extent to which vehicle-related taxes (mainly acquisition taxes and ownership taxes) can be an effective means to reduce CO2 emissions in new cars. 

Fiscal Measures to Reduce CO2 Emissions from New Passenger Cars – February 2002 

Vehicle Taxation 

Vehicle Taxation in the Member States of the European Union – February 2002 

2001

Reduced VAT Rates 

Report from the Commission on Reduced VAT Rates - October 2001 

Company Taxation 

Commission Staff Working Paper - SEC(2001) 1681. 

Company Taxation in the Internal Market – October 2001 

Excise Duties 

Study on the Competition Between Alcoholic Drinks – February 2001 

1997

VAT in Passenger Transport 

Passenger transport is taxed based on distance covered in each Member State. This tax is collected at internal frontiers. In addition, Member States apply different tax rates, with some Member States applying exemptions and zero-rates. Even within the same Member State, competing modes of passenger transport may be taxed differently. 

This study explores the economic, fiscal and practical effects of alternative taxation structures for passenger transport services in the EU. 

A Study of the VAT Regime and Competition in the Field of Passenger Transport – October 1997 

1996

VAT on Financial Services 

A study of methods of taxing financial and insurance services, carried out for the European Commission by Ernst & Young, 1996 (The 'Blue Book'). 

For the TCA-ADD Report, publication is restricted to the introduction and an extensive executive summary. The more detailed annexes of this report focus on field testing of the TCA model. 

This study was undertaken with the assistance of several financial institutions and insurance companies who participated in an expressed commitment of confidentiality. As the annexes contain extensive data which was supplied on this understanding, these parts of the report are not publicly available. 

A Study of Methods of Taxing Financial and Insurance Services – November 1996 

Report giving a detailed description of a modified form of the cash flow system of VAT (The TCA-ADD Report): 

VAT on Property 

This study performed for the European Commission deals with the application of Value Added Tax to the property sector in 15 Member States of the European Union. 

Study on the Application of Value Added Tax to the Property Sector – September 1996