Main tax outcomes of the ECOFIN meeting on 5 May 2026
On 5 May 2026, the Economic and Financial Affairs Council (ECOFIN) reached a general approach on a proposal for a Council Regulation amending Regulation (EU) No 904/2010 on administrative cooperation and combating VAT fraud, originally presented by the European Commission on 14 November 2025 . The new rules aim to strengthen cooperation between Member States, the European Public Prosecutor’s Office (EPPO) and the European Anti-Fraud Office (OLAF) in tackling cross-border VAT fraud, in particular carousel fraud schemes. Under the agreed framework, EPPO and OLAF will obtain more direct and centralised access, through a single-entry point, to key EU-level VAT information systems, including VIES, CESOP and information exchanged within Eurofisc, for targeted case-by-case investigations into suspected fraud. The Regulation also introduces rules governing the transmission of Eurofisc analysis reports identifying suspected cross-border fraudulent schemes, while establishing safeguards relating to data protection, audit logs, user identification and restricted access rights. According to the Council, the initiative is intended to improve coordination between administrative and investigative authorities, accelerate fraud investigations and strengthen the EU’s capacity to protect national and EU revenues. The file will now proceed to the European Parliament for consultation, currently expected in July 2026, before formal adoption by the Council.
ETAF provides feedback on European Business Wallet proposal
On 6 May 2026, ETAF published its feedback on the European Commission’s proposal for a Regulation establishing a European Business Wallet (EUBW), part of the broader EU Digital Package. ETAF welcomed the initiative as an important step towards reducing administrative fragmentation and simplifying cross-border interactions for businesses and professionals across the EU, while supporting the extension of the framework to self-employed individuals and sole traders. In its position paper, ETAF supported the proposal’s provisions on digital mandate and representation management under Article 5(1)(j), while calling for existing national power-of-attorney systems to be integrated into the EUBW framework rather than replaced. ETAF also stressed that the once-only principle should apply broadly so that information already submitted through the wallet is not requested again through parallel channels. In addition, ETAF supported the principle of legal equivalence under Article 4 and the mandatory acceptance obligation for public sector bodies under Article 16. The statement further emphasised that the “wallet-by-default” principle should function as a burden reduction tool and should not create new reporting obligations or duplicate submission requirements. Finally, ETAF highlighted the importance of developing a coherent EU-wide identification framework through the broader allocation of European Unique Identifiers (EUIDs) to economic operators and public authorities across the Single Market.
MEPs discuss tax priorities and oversight in future EU customs and taxation programme
On 4 May 2026, members of the European Parliament’s Committee on Economic and Monetary Affairs (ECON) discussed proposed amendments to the draft opinion on the future EU customs and taxation programme for the 2028-2034 period. The programme, proposed by the European Commission in September 2025, would merge several existing EU funding instruments, including Fiscalis, the Customs programme and the Union Anti-Fraud Programme, under a single framework with a proposed budget of €6.2 billion. During the debate, MEPs from several political groups emphasised the importance of transparency, accountability and monitoring in the allocation and use of EU funding, including through clearer reporting obligations, measurable objectives and interim evaluations of the programme’s effectiveness. From a taxation perspective, discussions focused on the role of the programme in supporting tax cooperation, digitalisation and the implementation of EU and international tax rules, including the OECD/G20 Inclusive Framework and Pillar Two. Some amendments also proposed strengthening support for the exchange of information and interoperability between national tax administrations, while other proposals questioned references to EU tax policy objectives and tax harmonisation. ECON members additionally discussed amendments concerning the proposed extension of VAT data access for the European Public Prosecutor’s Office (EPPO) and the European Anti-Fraud Office (OLAF), with broad support emerging for stricter safeguards, targeted access linked to specific investigations, and reinforced data protection and traceability requirements.
ECB analysis explores concept of a harmonised tax area within the EU
In the 2026 edition of Financial Integration and Structure in the Euro Area, the European Central Bank (ECB) published an article by Jens Tapking examining the possibility of creating a harmonised corporate tax area within the EU. The paper argues that full EU-wide tax harmonisation remains politically and legally difficult due to the unanimity requirement under Article 115 TFEU and the complexity of national tax systems. Instead, it explores the idea of an optional framework under which a group of Member States could voluntarily adopt a common set of corporate tax rules, while others could join at a later stage. Drawing parallels with the gradual introduction of the euro area, the paper suggests that such a harmonised tax area could reduce administrative complexity and facilitate cross-border investment by limiting firms’ exposure to multiple tax systems. The analysis further argues that countries participating in such a framework could become more attractive for investment, potentially encouraging additional Member States to join over time. The publication also notes that smaller Member States could particularly benefit from more uniform tax rules, as highly specific national tax systems may create disproportionate compliance costs for foreign investors. Overall, the paper contributes to the broader debate on tax coordination and Single Market integration within the EU.
OECD updates FAQs on the global minimum tax framework
On 30 April 2026, the OECD released updated Frequently Asked Questions (FAQs) on the Global Minimum Tax (GMT), providing further technical guidance on the application of the GloBE Model Rules. The updated FAQs incorporate developments linked to the recently agreed Side-by-Side Package and address practical implementation issues arising as jurisdictions move from rulemaking to operational application of the framework. The document includes clarifications on the interaction between the GloBE Rules and domestic minimum tax regimes, the application of safe harbours, administrative coordination, filing obligations and the treatment of specific tax attributes and adjustments relevant for the calculation of effective tax rates. The updated guidance also aims to support greater consistency in the implementation and administration of the global minimum tax across jurisdictions participating in the OECD/G20 Inclusive Framework on BEPS. Overall, the FAQs form part of the OECD’s broader efforts to facilitate coordinated implementation of Pillar Two and to reduce uncertainty and compliance challenges for tax administrations and multinational enterprise groups.
OECD continues regional tax outreach on transfer pricing and international tax cooperation
In recent weeks, the OECD continued its regional tax outreach activities in cooperation with regional tax organisations, development banks and international partners, as part of its broader work under the OECD/G20 Inclusive Framework on BEPS. On 29 and 30 April 2026, the OECD co-hosted a virtual Caribbean Tax Outreach Workshop on transfer pricing together with CARICOM/COTA, CATA, CIAT, IMF/CARTAC and the World Bank Group. The workshop focused on technical and administrative aspects of transfer pricing implementation, including domestic legislation, intra-group services, transfer pricing methodologies and sector-specific risks in areas such as tourism and distribution. Discussions also covered the practical application of Amount B and experiences with transfer pricing audits and capacity-building initiatives, including support provided through Tax Inspectors Without Borders (TIWB). According to the OECD, the event gathered 225 participants from 18 jurisdictions across the Caribbean and beyond. More broadly, the OECD highlighted that regional outreach initiatives remain an important component of international tax cooperation, allowing tax administrations to exchange experiences and address region-specific challenges linked to the implementation of international tax standards.
