This annual activity report is a management report of the Director-General of department Taxation and Customs Union to the College of Commissioners. Annual activity reports are the main instrument of management accountability within the Commission and constitute the basis on which the College takes political responsibility for the decisions it takes as well as for the coordinating, executive and management functions it exercises, as laid down in the treaties.
Some Indirect Tax considerations:
- The European Commission aims to modernize the Value Added Tax (VAT) system to support economic recovery and growth, as VAT is a significant source of revenue for public budgets.
- Member States lost €93 billion in VAT revenues in 2020, partly due to weaknesses in the overall VAT system.
- Therefore, the Commission adopted a package of proposals called VAT in the Digital Age at the end of 2022 to overhaul the EU’s VAT system, making it better suited for the digital economy, more resilient against fraud, and easier for businesses to comply with.
- The package includes real-time reporting and e-invoicing for cross-border businesses, updated VAT rules for certain platforms, and a single VAT registration for companies in more than one Member State.
- The Commission also works with Member States to improve the fight against VAT fraud, including estimating the tax gap for various types of taxes.
- Finally, the Commission launched an evaluation of the EU rules on VAT administrative cooperation to enhance measures against fraud.
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