European Commission prepares its response to the new set of US tariffs
On Wednesday 2 April, American President Donald Trump announced a new set of US tariffs, hitting EU imports with a 20% levy while targeting other trade partners such as China (34%), Vietnam (46%), and Japan (24%). In response, the European Commission is finalising countermeasures. It has previously announced countermeasures with up to 26 billion € in tariffs on American goods in reaction to US tariffs on steel and aluminium. Originally planned for 1 April, this package has been delayed until mid-April to align with the latest tariffs. The suspended tariffs from 2018 and 2020 on products ranging from bourbon to boats, paused in 2021 following a truce with the Biden Administration, will be reinstated. The scope of the tariffs package is now being reviewed to match the latest Donald Trump’s announcements. Reacting from Uzbekistan, European Commission President Ursula von der Leyen emphasised the EU's readiness to retaliate, urging negotiations while warning of potential market spillovers, particularly from China. “We are already finalising a first package of countermeasures in response to tariffs on steel. And we are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail”, she said. Read her full address here. The first round of US tariffs, including a 25% tax on car imports, is already in effect, and the additional customized rates will take effect on 9 April.
MEPs adopt the “Stop the Clock” proposal
On Thursday 3 April, MEPs adopted the so-called “Stop the Clock” proposal, which postpones the dates of application of certain corporate sustainability reporting and due diligence requirements. The proposal forms part of the “Omnibus I” package adopted by the Commission at the end of February 2025 to simplify EU legislation in the field of sustainability. It will postpone by two years the entry into application of the Corporate Sustainability Reporting Directive (CSRD) requirements for large companies that have not yet started reporting, as well as listed SMEs, and by one year the transposition deadline and the first phase of the application (covering the largest companies) of the Corporate Sustainability Due Diligence Directive (CSDDD). To speed up adoption of the measures, the Parliament agreed on Tuesday 1 April to deal with the file under its urgent procedure. To enter into force, the draft law now requires formal approval by the Council, which already endorsed the proposal without changes on 26 March.
European Commission adopts DAC7 implementing regulation
The European Commission adopted on Wednesday 2 April an implementing regulation concerning the list of statistical data to be provided by Member States in relation to Council Directive (EU) 2021/514 (so called DAC7). The text specifies that before 1 April each year Member States shall communicate by electronic means to the Commission the statistical data on mandatory automatic exchange of information reported by digital platform operators in accordance with DAC7. It also sets out in Annex XV a list of statistics to be provided in relation to joint audits. The implementing regulation is binding and directly applicable in all Member States.
A 5% broaden EU digital tax could generate 37.5 billion € in 2026, a CEPS study finds
The Centre for European Policy Studies (CEPS) published on Wednesday 2 April its study “Towards a European digital services tax: renewing the momentum for a fair contribution”, requested by the Greens/EFA group in the European Parliament. The study explores the challenges and policy considerations surrounding digital taxation in the EU. In particular, it suggests that a 5% EU digital services tax (DST) on digital advertising, e-commerce, cloud services and digital media could generate 37.5 billion € in 2026, due to the rapid expansion of the European digital economy. In comparison, the previous 2018 EU DST of 3% estimated annual expected revenues of only 4.7 billion € for Member States. “Given the stalled progress of the OECD's Pillar One framework, it is crucial for the EU to act decisively to ensure that digital platforms contribute fairly to public finances. While international cooperation remains an important goal, the EU cannot afford to wait indefinitely for global agreements to materialise”, the study states. The report also examines alternative digital taxation methods, including a VAT on digital transactions, a digital permanent establishment tax, and a destination-based cash-flow tax, each with potential benefits and legal challenges. However, the DST remains the most viable short-term option, given the Commission’s prior work and Member States’ experience with similar measures, the CEPS concludes.
FISC Hearing on the role of tax in aligning the green transition and competitiveness
The next FISC Subcommittee meeting is scheduled for 24 April from 09:00 to 12:30. It will begin with a public hearing from 09:00 to 10:30 on "The role of tax in aligning the green transition and competitiveness," focusing on how tax policies can support environmental goals without undermining economic growth. Following this, from 10:30 to 11:00, FISC MEPs will discuss the ECON draft report on "The role of simple tax rules and tax fragmentation in European competitiveness," prepared by MEP Michalis Hadjipantela (EPP, Cyprus). The draft report emphasises that the EU’s tax agenda must prioritise simplification, digitalisation and cooperation to create a more competitive tax environment. It notably urges the Commission to systematically conduct ex ante impact assessments and competitiveness checks for all new tax proposals to reduce administrative burdens and align with economic growth objectives.
EPPO cracks down on 50 million € VAT fraud scheme
At the request of the European Public Prosecutor’s Office (EPPO) in Munich, authorities arrested three suspects and conducted multiple searches across Germany, Bulgaria and Poland in connection with a 50 million € VAT fraud scheme involving electronic goods, the EPPO announced on Thursday 3 April. The enforcement actions were carried out with support from tax and law enforcement agencies in the three countries. The suspects allegedly participated in a cross-border VAT carousel fraud, exploiting EU tax exemptions on intra-member transactions. Part of an organised crime group, they are believed to have facilitated fraudulent operations through German missing trader and buffer companies. Two of the three detainees were released after cooperating with investigators. The investigation remains ongoing and is linked to EPPO’s “Midas investigation”, which spans 17 countries and involves 195 million € in estimated damages.
Save the date: ETAF Conference in Brussels on 3 June 2025
