Changes from plenary report to adopted text

Change 1

ChangedB. whereas EU Member States collected EUR 6 712 billion in taxes in 2023 (including compulsory actual social contributions), which represents 4.74,7 % more than in 2022;

Change 2

ChangedD. whereas in 2023 the tax burden (i.e. overall tax revenues as a share of GDP) in the EU stood at 39.039,0 % of GDP, a slight decrease compared with 2022, but still a significantly high ratio;

Change 3

ChangedF. whereas in 2023 the VAT revenue-to-GDP ratio amounted to 7.17,1 % of EU GDP and 18.318,3 % of total government revenue;

Change 4

ChangedG. whereas according to the Commission, in 2022 the EU VAT compliance gap alone amounted to EUR 89.389,3 billion, or around 7 % of the total expected VAT revenue; whereas according to estimates, one quarter of the VAT compliance gap is directly linked to criminal VAT fraud;

Change 5

ChangedJ. whereas according to estimates, the total tax compliance costs in the 27 EU Member States plus the UK are estimated at EUR 204 billion, equating to 1.31,3 % of their combined GDP; whereas micro-enterprises bear the overwhelming majority of these costs (87 %), followed by small businesses (10 %), placing a disproportionate administrative burden on smaller companies;

Change 6

ChangedN. whereas the 2022 Commission study estimated that in 2019, businesses within the then 28 Member States of the EU incurred, on average, an annual tax compliance cost equivalent to 1.91,9 % of their turnover; whereas among the various taxes, businesses regarded VAT and corporate tax as those with the highest compliance burden;

Change 7

Removed59. Instructs its President to forward this resolution to the Council and the Commission.

Change 8

Added59. Instructs its President to forward this resolution to the Council and the Commission.

RemovedYour Rapporteur takes the view that in the current economic landscape, we must strive for simplification and reduce regulatory and administrative burden.

RemovedThe European Union’s tax landscape is at a critical juncture, requiring a balance between fostering economic growth, enhancing competitiveness, and ensuring tax fairness. The evolving economic environment, marked by digitalisation and globalisation, requires coordinated tax policies to address cross-border challenges while reducing administrative burdens for businesses, particularly small and medium-sized enterprises (SMEs).

RemovedThe principles enshrined in the Treaty on European Union, in particular in Article 4, and in the Treaty on the Functioning of the European Union underscore the importance of the internal market, the free movement of goods, services, capital, and people. A predictable tax framework is fundamental to supporting the internal market and ensuring that businesses can operate efficiently across borders without undue complexity. While the EU has made progress in tackling tax evasion and avoidance, further measures are needed to reduce bureaucratic hurdles and create a more business-friendly environment, as highlighted in the Draghi report on “The Future of European Competitiveness”.

RemovedTax simplification and digitalisation are key to reducing compliance costs and improving efficiency. The Commission’s commitment to cutting reporting requirements by 25% (and at least 35% for SMEs) is a step in the right direction. Ex-ante impact assessments for new tax-related proposals and competitiveness checks on existing measures will help align tax policies with broader economic goals.

RemovedDigitalising tax administration holds great potential for reducing administrative burdens. Leveraging artificial intelligence (AI) and digital tools can streamline compliance processes, making it easier for companies, especially SMEs, to navigate complex tax regulations.