Commission's Tax Plan 2023

The European Commission has published its DG Tax and Customs Union Management plan for 2023. The plan highlights that the DG TAXUD will continue to work towards the agenda to create a “robust, efficient and fair tax framework” as set out in the Business Taxation in the 21st Century Communication published in 2021. In particular, the plan lists a number of developments that the Directorate-General for Taxation and Customs (DG TAXUD) will work on in the year ahead under a number of broad headings.

European green deal

• DG TAXUD will support the work to pin down the final technical details of the EU CBAM
• Revision of the Energy Tax Directive to overhaul the EU’s outdated framework for taxing energy
• Continue to provide guidance and explanations to Member States seeking derogations from EU excise duties and VAT rates for environmental and climate friendly products

An economy that works for people

• Continue to push for the swift implementation of the two pillar international corporate tax reform agreed in 2021, including establishing an EU approach to reallocation of taxing rights under Pillar One once the OECD has agreed this aspect. The Commission will present a report by 30 June 2023 on progress on Pillar One with a view to providing more clarity on the plans for the EU proposal.
• In 2023, a major new initiative will be proposed to install a new, modern and simple framework for corporate taxation in Europe. BEFIT will create a common rulebook for calculating the tax base of companies operating cross-border within the EU
• DG TAXUD will present a new proposal to improve withholding tax relief procedures in the EU
• DG TAXUD will carry out an evaluation of DAC and its amendments
• In 2023, DG TAXUD will present a proposal to prohibit enablers from designing, marketing and/or helping to create aggressive tax planning or tax evasion schemes in non-EU countries. The proposal – SAFE – will target those that encourage the use of complex structures in third countries
• The SAFE proposal is intended to complement the Unshell Directive proposal and the Commission will continue to support Member States’ negotiations on the Unshell Directive with a view to its agreement in 2023
• Secure an agreement on the VAT in the Digital Age package (though there is no mention of the Commission’s review of the VAT treatment of financial services
• The Commission will continue to make efforts for the implementation of the EU-UK Trade Co-operation Agreement on VAT administrative co-operation and tax debt recovery assistance
• In relation to EU own resources taxation, as well as the proposals for CBAM and the upcoming Pillar One Directive, the Commission will also work on building new own resources into the BEFIT proposal. There is also mention that DG TAXUD will examine the issue of financial sector taxation as a possible now own resource (though it is unclear if this is a reference to the FTT proposal)

Promoting our European way of life

• DG TAXUD will present, in the first half of 2023, the biggest reform of the EU Customs Union to make the Customs Union fit for a more globalised, digitalised and geopolitical world, including simplifying processes, improving risk management, exploiting the full potential of data sharing and creating and improved governance structure. Digitalisation will be a key part of this reform involving development of IT systems needed for the reforms.
• In 2023, DG TAXUD will start work on implementing the EU Single Window Environment for Customs designed to improve digital cooperation and facilitate quicker and more efficient data sharing between border authorities