ETAF Professional Law Conference on 9 December 2025 - Programme announced!
The European Tax Adviser Federation (ETAF), in cooperation with MEP Maria Grapini (S&D member), is pleased to invite you to join leading voices from the European Parliament, the European Commission and the tax profession for an open and forward-looking exchange on what lies ahead for the Single Market for services and how the tax profession should prepare. Speakers include: - MEP Maria Grapini (S&D member, Romanian), Vice-President of the IMCO Committee; - Mehdi Hocine, Head of Unit “Services strategy and mutual recognition” at DG GROW of the European Commission; - Salvador Marín, President of the European Federation of Accountants and Auditors for SMEs (EFAA); - Léa Marchal, EU journalist and deputy redactor in chief at Agence Europe; - ETAF President Philippe Arraou; and - ETAF Head of Office Michael Schick. On-site seats are limited and will be attributed on a first-come, first-served basis. Online participation is also possible. Secure your seat now and register here.
European Commission unveils new digital simplification package
On 19 November 2025, the European Commission released a new digital simplification package featuring a Digital Omnibus to streamline EU data rules, alongside a Data Union Strategy to unlock high-quality data for AI and a European Business Wallet to give companies a single digital identity for cross-border operations. The Digital Omnibus proposes targeted amendments to the GDPR, the AI Act and cybersecurity and data laws to clarify obligations and better align existing texts. Key changes include adjusting the application timeline for high-risk AI rules to a maximum of 16 months, linking their entry into force to the availability of essential support tools and standards, extending certain simplifications, such as for technical documentation, to SMEs and small mid-caps, and strengthening the AI Office’s central oversight role. The package also introduces a European Business Wallet to allow companies and public sector bodies to digitally sign, timestamp and seal documents, securely create, store and exchange verified information, and communicate safely with partners and administrations across all 27 Member States.
European Commission publishes long-awaited DAC evaluation
On 19 November 2025, the European Commission published its long-awaited evaluation of the Directive on Administrative Cooperation (DAC), covering the period 2018–2023 and including all amendments up to DAC6. Drawing on an external study and the 2024 public consultation, the Commission concludes that the DAC provides a robust and well-functioning legal framework that strongly supports Member States in combating tax fraud, evasion and avoidance, with benefits that significantly outweigh the costs. At the same time, the evaluation identifies several areas for improvement that will inform the DAC recast scheduled for Q2 2026, including consolidating all DAC legal texts into a single instrument, eliminating duplications and inconsistencies (including possible revisions to DAC6 hallmarks), integrating UNSHELL elements into this simplified DAC framework, issuing systematic EU-level guidance for new amendments, harmonising penalty regimes, introducing an EU-wide tax identification number (TIN) and exploring the creation of a Single EU Access Point for DAC exchanges and potentially also DAC reporting.
European Commission seeks feedback on the revision of eInvoicing rules in public procurement
On 19 November 2025, the European Commission launched a call for evidence on the revision of Directive 2014/55/EU on eInvoicing in public procurement, scheduled for adoption in Q4 2026. At this stage, the Commission is considering several policy options including laying down uniform and harmonised eInvoicing rules across the EU by introducing an obligation on businesses suppliers to use eInvoicing in accordance with the European eInvoicing standard in B2G transactions in public procurement, extending the scope of the Directive to cover B2G transactions below the EU public procurement thresholds, and/or introducing common transmission methods for eInvoicing on the basis of the eDelivery Building Block and harmonised requirements for existing national eInvoicing certification schemes. Interested stakeholders have until 17 December 2025 to submit their feedback to the Commission on this call for evidence. A genuine public consultation, with more detailed information, will follow before the end of the year and will remain open for 12 weeks.
Council approves updated cooperation agreements with Switzerland, Liechtenstein, Andorra, Monaco and San Marino
On 20 November 2025, the Council of the EU approved updated tax cooperation and transparency agreements with Switzerland, Liechtenstein, Andorra, Monaco and San Marino, following Commission proposals from July 2025 to reflect new OECD-developed international standards. The revised agreements expand the automatic exchange of financial account information to cover electronic money products and digital currencies, establish a new framework for cooperation on VAT recovery and the prevention of tax fraud and evasion, and strengthen due diligence and reporting requirements to enable faster and more effective action by tax administrations. The updated agreements will enter into force on 1 January 2026. The EU will also seek to further deepen tax cooperation with Switzerland.
FISC MEPs quiz experts on tobacco and energy taxation
On 20 November 2025, MEPs from the FISC Subcommittee held two public hearings on tobacco and energy taxation. The tobacco taxation hearing followed the Commission’s recent legislative proposal, with experts outlining their assessments and the Commission highlighting goals extending beyond health concerns to reducing significant single market distortions caused by tax shopping. MEPs asked whether greater differentiation in tax treatment between cigarette and non-cigarette products would be beneficial, whether clear correlations exist between taxation levels and consumption patterns, whether the product categories are appropriately defined and whether the new system risks increasing contraband. The second hearing focused on energy taxation, where MEPs questioned experts on possible next steps to overcome the stalled negotiations on the Directive’s revision, how to make the framework more pragmatic and consensus-building, how to improve investment certainty for businesses and the impact of the current patchwork of national taxes. They also explored whether Parliament should continue pushing for a revision of the directive or consider alternative approaches. All presentations from the speakers and recordings can be found here.
OECD updates Model Tax Convention on income and capital to reflect remote work rise
On 19 November 2025, the OECD released an update to the Model Tax Convention on Income and on Capital, offering new detailed guidance on short-term cross-border remote work. The update clarifies when remote work from another state, including from a “home office”, creates a taxable presence, adding commentary to Article 5 and introducing a bright-line test under which an employee must work in their home office for at least 50% of their total working time in a 12-month period aligned with the fiscal year. Working time will be determined based on contractual arrangements, the commercial reasons for working abroad and whether the employee has a specific business purpose, such as engaging with customers, suppliers or associated enterprises. The update also introduces a new alternative provision setting out how income from activities connected with the extraction of natural resources such as oil, gas and minerals should be taxed, a measure that is particularly relevant for developing and other resource-endowed economies. These updates will be incorporated into the revised condensed and full editions of the OECD Model Tax Convention to be released in 2026, and the OECD will present the changes in a webinar on 10 December 2025, for which registration is available here.
OECD presents tax simplification ideas
On 18 November 2025, the OECD published a report on enhancing simplicity in tax systems to support certainty and growth, prepared at the request of the South African G20 Presidency. The report examines what drives complexity, the trade-offs involved and how both domestic and multilateral rulemaking could better integrate simplicity into policy design. It proposes a potential “simplicity checklist” (p.22) to guide legislators and international bodies towards solutions where any remaining complexity is proportionate and intentional. The checklist covers process-focused questions, such as whether a proper impact assessment and problem diagnosis were undertaken, whether early stakeholder consultations occurred, whether drafting included a review cycle, whether interactions with existing rules were assessed, and whether sufficient time was allowed for rule development. It also addresses the substance of tax rules, asking whether simplicity was an explicit objective, how it balances with other policy aims and whether compliance implications for taxpayers were factored in. The report was submitted to the G20 Leaders’ Summit on 22–23 November in Johannesburg.
