The report, drafted by Michalis Hadjipantela (EPP, CY), was adopted in the Economic and Monetary Affairs Committee by 46 votes in favour, 2 votes against and 11 abstentions. It will feed into the ongoing legislative work on legislative simplification, more particularly a dedicated Commission proposal expected in early 2026.

The report presents a host of ideas for simplifying tax compliance and eliminating administrative hurdles in the internal market. This would reduce the financial cost of compliance – notably for SMEs, which, the report says, is a cost of 30% of the taxes they pay.

The suggestions would also make it easier for governments to administer and collect taxes, contributing to reduced tax evasion and avoidance and mobilising more resources for states to invest elsewhere.

Tax simplification

The report urges the Commission to establish an EU Tax Data Hub to improve the automatic exchange of tax information and reduce administrative burden. This would also help…