The creation of the EU single market with no physical borders has led to steadily increased cross-border trade, increased mobility and the rise of electronic markets. This has made it necessary to continuously modernise the legal instruments for mutual assistance and make cooperation between tax administrations more efficient.
The following documents reflect the legal instruments for tax cooperation and assistance in the EU:
- Council Regulation (EU) No 904/2010: administrative cooperation in the field of VAT
- Council Regulation 2073/2004 and Council Directive 2004/106: administrative cooperation in the field of excise
- Council Directive 2011/16/EU: administrative cooperation in the field of (direct) taxation
- Council Directive 2010/24/EU and Commission Implementing Regulation (EU) No 1189/2011: mutual assistance in the field of recovery of claims
History
EU countries have a long history of mutual assistance in taxation. In direct taxation, mutual assistance has been possible under bilateral tax treaties and Council Directive 77/799/EC since 1977, and later Council Directive 2011/16/EU (Directive on Administrative Cooperation).
When the internal market was created and physical border controls were abolished, it was necessary to set up the VAT Information Exchange System (VIES) to manage VAT in intra-community trade. Administrative cooperation in VAT was set up by Council Regulation 218/92/EC.
Mutual assistance in the recovery of taxes, customs and certain fees was established by Directive 76/308/EC. This directive was extended to VAT by Directive 79/1071/EC, to excise duties by Directive 92/108/EC, and to taxes on income, capital and insurance premiums by Directive 2001/44/EC.
Risk Management
Risk Management is designed to improve a tax administration's effectiveness in dealing with risks. This may result in measures aimed at avoiding non-compliance by taxpayers or targeting corrective action more effectively.
The Compliance Risk Management (CRM) Guide is a handbook for EU tax administrations, recently revised for the digital era. It was developed and updated by tax officials to provide a common foundation for decisions at all management levels.
The guide outlines the pillars of CRM strategies, from influencing taxpayer behaviour to making optimum use of digitalisation, data and technology.
Compliance Risk Management Guide For Tax Administrations
Related links
Taxpayer Identification Number (TIN)
