Member States working towards an agreement on DAC9 on 11 March
Member States are working towards a political agreement on the ninth amendment of the Directive on administrative cooperation in the field of taxation (DAC9), aiming to simplify compliance obligations for multinational enterprise groups (MNEs) under the Pillar Two Directive. The negotiations on the proposal have been speed up as MNEs are expected to submit their first top-up tax information return by 30 June 2026, as required under the Pillar Two Directive, with the Polish Presidency of the Council aiming for an agreement at the next Ecofin Council meeting on Tuesday 11 March. However, during a preparatory meeting on Tuesday 4 March, several Member States reportedly did not support the compromise text on the table. The divisive issue is a provision that would grant the European Commission power to quickly make future updates, through delegated acts, to the standard form for the top-up tax information return to align it with any future updates to the OECD’s standardised GloBE Information Return (GIR). Some Member States consider that the Council should have that authority and therefore asked the Commission’s delegated acts to be replaced by Council implementing acts. However, the Polish Presidency and the Council legal service both warned that this would delay the adoption process and create confusion for businesses. The proposal rejected on 4 March was setting a four-year time limit for the Commission’s power to use delegated acts to update the standard top-up tax return. As this solution failed to convince all the Member States, the Polish Presidency continued bilateral talks and a new compromise text has been drafted, which now proposes that the standard form would be amended through a Council Directive under the special legislative procedure. See the latest compromise text here with an accompanying note from the Polish Presidency.
EU Finance Ministers to adopt conclusions on tax decluttering
During the Ecofin Council meeting on Tuesday 11 March, EU Finance Ministers are expected to adopt conclusions on a tax decluttering and simplification agenda. Whereas the European Commission was considering issuing such a plan in the first half of 2026, a leaked draft version reportedly gives the European Commission an October deadline to present its agenda for amending tax measures that complicate tax compliance and administration. It adds that the simplification effort should also cover a review of the complete EU taxation acquis, including indirect taxation. The draft conclusions also ask the Commission to ensure that the principles of simplification and decluttering still apply when the Commission develops any future legislative proposals and to increase Member States' involvement. On the same day, Ministers will also formally adopt the VAT in the Digital Age (ViDA) package, that was agreed last November. Furthermore, the Commission will present the two recent omnibus packages to Ministers, which will exchange views on it. A similar discussion will also take place at the Competitiveness Council on Wednesday 12 March.
EPPO continues to register an increase of cases in 2024
The annual report of the European Public Prosecutor’s Office (EPPO), published on Monday 3 March, shows a continuous rise in the EPPO’s activities. At the end of 2024, the EPPO had a total of 2 666 active investigations (an increase of 38% since the previous year), with an estimated damage to the EU budget of €24.8 billion (22,5% more than in 2023). More than half of the estimated damage (€13.15 billion) is linked to cross-border VAT fraud, with almost systematic involvement of criminal organisations, posing a major risk to internal security. More than 1 500 new investigations were opened in 2024 (almost 10% more than in the previous year), representing €13.07 billion in estimated damage. By the end of 2024, the EPPO was handling 311 active cases related to the NextGenerationEU, the majority of which (307) stemmed from the Recovery and Resilience Facility (RRF). The estimated damage to the EU’s financial interests amounts to €2.8 billion, which represents 30% of the overall estimated damage for subsidy fraud. This number is expected to increase, in the context of the accelerated implementation of NextGenerationEU funding, the EPPO considers. In 2024, the EPPO processed 6 547 crime reports (56% more than in the previous year). Over 70% came from private parties and close to 27% from national authorities. Only 1,7% came from institutions, bodies, offices and agencies of the EU.
European Commission unveils its Union of Skills plan
The European Commission published on Wednesday 5 March a Communication for the achievement of a Union of Skills within the EU. The document proposes a set of new targets by 2030 to increase basic skills within the EU, facilitate recruitment by businesses across the EU as well as attract, develop and retain the skills and talents. One objective of the European Commission that may affect our members is the strengthening of cross-border mobility and free movement of skills by facilitating validation of skills and recognition of qualifications. Under this objective, the Commission is notably considering exploring the need for a potential legislative proposal to address barriers to the mobility of workers, including in unregulated professions, and propose actions to further facilitate, expand and modernise recognition processes for regulated professions, in particular by leveraging digital tools. The Commission also plans to propose possible common rules for simpler procedures for handling the recognition and validation of qualifications and skills of third country nationals. Moreover, it will set up a European Skills Intelligence Observatory to provide data and foresight regarding skills, as well as an ad hoc European Skills High-Level Board that will bring together education and training providers, business leaders and social partners to provide comprehensive insights on skills to the EU policy makers.
Save the date: ETAF Conference on 3 June 2025 in Brussels
