The European Parliament adopted a non-binding resolution urging the European Commission to simplify the EU tax code as part of wider efforts to support economic growth and strengthen industrial competitiveness across the bloc.
The resolution—authored by Cypriot MEP Michalis Hadjipantela—received 499 votes in favour, 66 against, and 53 abstentions, according to an official Parliament statement.
Key recommendations in the adopted text:
Simplify the EU tax code and reduce administrative burdens, particularly for cross-border businesses.
Cut reporting requirements and introduce an EU Tax Data Hub to enhance automatic exchange of tax information.
Harmonize the use of Tax Identification Numbers (TINs) across member states.
Assess and simplify VAT and tax avoidance rules, including updates to the Anti-Tax Avoidance Directive (ATAD).
Although the European Parliament cannot initiate or amend tax legislation, the resolution signals strong political support for simplification. Many of the Parliament’s suggestions are already under review by the Commission, which plans to introduce two key legislative proposals in 2026:
A revised tax information-sharing directive
A tax omnibus bill consolidating and updating existing EU tax rules
At a recent tax conference, EU Commission official Ioanna Mitroyanni confirmed that ATAD is under review due to its disproportionate impact on sectors such as public infrastructure and social housing, particularly in relation to the interest limitation rule.
Hadjipantela stated the aim is a “simpler, more transparent, and predictable EU tax framework” that reduces complexity and enhances competitiveness amid growing global and economic pressures.