Key takeaways from the ETAF Conference “Tax systems in the digital age: current and future challenges”
On Thursday 7 May 2026, the European Tax Adviser Federation (ETAF) hosted an online conference on the theme “Tax systems in the digital age: current and future challenges”, attracting more than 2 200 participants across the European Union, including tax professionals, policymakers and academics. ETAF President Philippe Arraou opened the event by stressing that digitalisation is reshaping the daily reality of businesses and tax administrations, and that the role of regulated tax advisers is becoming more, not less, important as real-time data flows replace periodic reporting. The keynote address was delivered by Wouter Bollaert, General Advisor at the Belgian Federal Public Service Finance (Taxation and SMEs), who presented Belgium’s experience of introducing mandatory B2B e-invoicing from 1 January 2026, based on the PEPPOL framework. He highlighted that no single tool is sufficient, that tax advisers played a crucial role in the rollout, particularly for SMEs, and that closer EU-level cooperation on interoperability is needed. The panel discussion, moderated by Elodie Lamer, Tax Journalist at Tax Notes, brought together Carlos Menezes, representative of the Portuguese Order of Certified Accountants (OCC) and Professor at the University of Minho, Paul Gisby, Senior Director at Accountancy Europe, and David Hadwick, Professor at the Law Faculty of the University of Antwerp and Researcher at the DigiTax Centre of Excellence. Panellists examined the benefits and limits of digital tax reform, stressing that measures such as e-invoicing and real-time reporting can improve compliance and reduce fraud but must remain proportionate and build taxpayer trust. David Hadwick warned that algorithmic bias in audit-selection models is insufficiently governed and called for legal frameworks enabling taxpayers to verify how their data is processed. In his closing remarks, Philippe Arraou announced that ETAF will celebrate its 10th anniversary with a special event in Brussels on 3 November 2026. The conference can be watched again online here.
ECJ clarifies conditions for VAT liability of intra-group transfer pricing adjustments
On 13 May 2026, the European Court of Justice (ECJ) delivered its judgment in Case C-603/24, concerning the VAT treatment of intra-group transfer pricing adjustments linked to vehicle repair costs. The case arose from a dispute between Stellantis Portugal and the Portuguese tax authorities regarding adjustments made between manufacturers and distributors within the General Motors group to guarantee a predetermined profit margin for distributors. The Court held that such transfer pricing adjustments do not automatically constitute consideration for a taxable supply of services under Article 2 of the Sixth Council Directive 77/388/ECC. In particular, the Court emphasised that VAT liability requires a direct link between a supply of services and the consideration received, as well as a legal relationship involving reciprocal commitments between the parties. According to the judgment, the transfer pricing adjustments at issue were primarily intended to ensure the distributor’s target profit margin and were calculated based on various distribution costs, including but not limited to vehicle repair costs. The Court therefore found that, in the absence of a specific legal relationship establishing reciprocal obligations relating to repair services and corresponding remuneration, such adjustments could not be regarded as payment for taxable services. The judgment provides further clarification on the distinction between transfer pricing adjustments and consideration for VAT purposes in intra-group arrangements.
EU ministers to debate proposed EU Inc. 28th regime framework
On 28 and 29 May 2026, the Council of the European Union’s Competitiveness Council configuration for Internal Market, Industry, Research and Space is scheduled to hold a policy debate on the proposed Regulation establishing the “EU Inc.” 28th regime corporate legal framework . According to the Council Presidency note published on 13 May 2026, the proposal aims to introduce an optional harmonised corporate legal framework designed to facilitate the cross-border operation and scaling-up of innovative companies, SMEs and start-ups across the Single Market. The document highlights key elements of the proposal, including a digital-by-default company framework, simplified incorporation procedures, digital insolvency procedures and an EU employee stock option scheme with harmonised features and harmonised timing of taxation . The note also confirms that discussions in the Council Working Party on Company Law have already identified taxation aspects among the areas requiring further clarification, alongside issues relating to the legal basis, insolvency rules and safeguards against forum shopping. Ministers are expected to provide political guidance on the future direction of negotiations as work continues towards a Council mandate on the file.
European Parliament committee seeks to remove tax provisions from Pan-European personal pension reform
On 11 May 2026, the European Parliament’s Committee on Employment and Social Affairs (EMPL) published its draft opinion on the revision of the Pan-European Personal Pension Product (PEPP) Regulation, prepared by Belgian MEP Liesbet Sommen (EPP). From a tax perspective, the draft opinion strongly reaffirms that the organisation and taxation of pension systems remain a national competence and proposes deleting several provisions in the Commission proposal relating to favourable tax treatment for PEPPs. In particular, the rapporteur removed the proposed provision requiring Member States to grant PEPPs tax treatment “not less favourable” than national personal pension products and stressed that any measures concerning PEPP taxation should respect national fiscal sovereignty and avoid direct or indirect tax harmonisation. More broadly, the draft opinion proposes a more consumer-protection-oriented approach to PEPPs, including maintaining a 1% annual cost cap for the Basic PEPP, strengthening transparency and disclosure requirements, introducing minimum protection mechanisms for retirement savings products, and extending the implementation period from one to two years. Amendments may be tabled in the EMPL committee until 20 May 2026.
MEPs highlight tax transparency and Pillar Two cooperation in EU-Switzerland agreements opinion
On 7 May 2026, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) adopted its opinion on the proposed Council decision concerning a broad package of agreements aimed at consolidating and expanding bilateral relations between the European Union and Switzerland. From a taxation perspective, the opinion underlines the importance of maintaining a level playing field in areas including taxation, State aid and anti-money laundering, while stressing the need for continued cooperation on tax transparency and the fight against tax avoidance and evasion. The text welcomes the entry into force on 1 January 2026 of the amending protocol strengthening the EU-Switzerland tax cooperation agreement, notably through expanded automatic exchanges of financial account information and a new framework for cooperation on the recovery of VAT claims . ECON members also encouraged continued EU-Switzerland cooperation within international tax forums, including support for the OECD/G20 Inclusive Framework and the effective implementation of Pillar Two minimum taxation standards. In addition, the opinion notes that the package itself contains only limited operational tax-related provisions linked to agency privileges and immunities and does not establish a broader tax governance framework between the parties.
European Commission publishes summary report on simplifying EU excise procedures
On 8 May 2026, the European Commission’s Directorate-General for Taxation and Customs Union (DG TAXUD) published the summary report of its stakeholder workshop on simplifying excise procedures, held on 23 March 2026 with the participation of 75 businesses operating under EU excise duty rules. The discussions highlighted a number of practical challenges linked to the operation of the current EU excise framework, including divergent implementation and enforcement practices across Member States, fragmented compliance obligations and insufficient coordination between customs, excise and VAT procedures. Participants also pointed to significant burdens linked to guarantees, reporting obligations, low-volume movements and distance sales of alcoholic beverages within the EU. Businesses called for more uniform EU-wide procedures, clearer guidance and training, simplified authorisation and reporting requirements and improved coordination between competent authorities. The report also notes suggestions for more centralised support mechanisms for economic operators and simplifications for SMEs and low-risk consignments. According to the Commission, the feedback gathered during the workshop will contribute to its ongoing study on simplifying excise procedures in intra-EU operations and may inform future legislative and administrative initiatives aimed at reducing compliance burdens and improving competitiveness.
MEPs back stronger safeguards in VAT fraud access proposal
On 5 May 2026, the European Parliament’s Committee on Budgetary Control (CONT) adopted its opinion on the proposal to amend Regulation (EU) No 904/2010 concerning access by the European Public Prosecutor’s Office (EPPO) and the European Anti-Fraud Office (OLAF) to EU-level VAT information. The opinion supports enhanced cooperation and information-sharing to strengthen the fight against cross-border VAT fraud, including more systematic transmission of customs-related VAT fraud data to Eurofisc, EPPO and OLAF, as well as expanded access to import-related VAT information linked to the Import One-Stop Shop (IOSS) and customs procedures involving VAT deferrals . The committee also proposed additional safeguards relating to data protection, proportionality and oversight, including restrictions on untargeted searches, stronger logging and traceability requirements, and regular reporting obligations for EPPO and OLAF regarding the use of centralised VAT data access.
AMLA consults on new EU anti-money laundering reporting standards and publishes EU-wide findings
On 13 May 2026, the Anti-Money Laundering Authority (AMLA) launched a public consultation on three draft Implementing Technical Standards (ITS) aimed at strengthening cooperation between Financial Intelligence Units (FIUs), AMLA and the European Public Prosecutor’s Office (EPPO). Two draft ITS establish common reporting formats for FIUs and AMLA when transmitting information to the EPPO concerning suspected offences affecting the EU’s financial interests, while a third introduces standard templates for information exchanges between FIUs across the EU. AMLA will hold public hearings on the draft standards on 27 May 2026, with participation possible upon registration, for the morning session (10:00 – 12:00 CET) on the draft ITS on FIU and AMLA reporting to the EPPO, and the afternoon session (15:00 – 17:00 CET) on the draft ITS on FIU-to-FIU exchanges. Separately, on 11 May 2026, AMLA published the findings of Chair Bruna Szego’s 2025 Roadshow across all 27 EU Member States. The report identified several common challenges across the EU AML/CFT framework, including fragmented supervisory practices, uneven AML/CFT maturity in the non-financial sector, resource constraints, growing fraud and crypto-asset risks, as well as increasing pressure linked to instant payments, sanctions circumvention and technological developments. Stakeholders also broadly supported the new EU AML/CFT framework and AMLA’s role in promoting supervisory convergence, common standards and stronger cross-border cooperation.
