Tax priorities of the Irish Presidency of the Council of the EU
Under the motto “Strength with unity”, Ireland will take over the Presidency of the Council of the European Union on 1 July 2026. Over the next six months, in the area of taxation, the Irish Presidency will aim to progress and possibly conclude work on the recast of the Directive on Administrative Cooperation (DAC), while also taking forward the expected Tax Simplification Omnibus, according to its programme. The Presidency will also continue the work of the Code of Conduct Group on Business Taxation, including the update of the EU list of non-cooperative jurisdictions for tax purposes in October 2026, and will monitor the implementation of the OECD Global Minimum Tax, including the Pillar Two rules and the Side-by-Side solution at the EU level. Other tax-related priorities include pursuing agreement on the revision of the Tobacco Tax Directive, progressing work on the EU VAT framework, advancing the proposed extension of the Carbon Border Adjustment Mechanism (CBAM) Regulation and continuing engagement on international tax matters in OECD and UN fora. In parallel, the draft programme of the Ireland-Lithuania-Greece Presidency Trio states that the three Presidencies are “united in diversity and aligned around a shared responsibility and common purpose”. The trio programme confirms a broader focus on competitiveness, simplification, the Single Market, the Savings and Investment Union, the Multiannual Financial Framework and support for the rules-based international order.
Tax outcomes of the final ECOFIN meeting under Cyprus Presidency
On 12 June 2026, EU Finance Ministers held the final Economic and Financial Affairs Council (ECOFIN) meeting under the Cypriot Presidency. In the area of taxation, the Council approved ECOFIN’s biannual report to the European Council on tax issues and adopted conclusions on the progress achieved by the Code of Conduct Group on Business Taxation during the previous six months. Ministers also reached a general approach on the proposal to strengthen the Carbon Border Adjustment Mechanism (CBAM), extending its scope to additional downstream products and introducing new anti-circumvention measures. Ministers also held a policy debate on the Market Integration and Supervision Package (MISP), although no political breakthrough was reached. The next ECOFIN Council will take place on 10 July, under the Irish Presidency.
European Commission adopts implementing rules for new €3 customs duty on low-value imports
On 5 June 2026, the European Commission adopted an implementing Regulation amending the Union Customs Code Implementing Regulation to facilitate the application of the temporary €3 customs duty on imported goods in consignments with an intrinsic value not exceeding €150. The amendments follow the abolition of the customs duty relief for low-value consignments under Regulation (EU) 2026/382 and will apply from 1 July 2026. The new rules align customs procedures with the existing VAT framework for distance sales of imported goods, including the Import One-Stop Shop (IOSS). Among other changes, the regulation introduces new customs declaration codes, clarifies the treatment of goods sold through distance sales, and provides that, where the IOSS is not used, customs declarations must generally be lodged in the Member State of destination. The regulation also updates rules on grouped consignments and postal consignments to ensure the consistent application of the new customs duty regime.
General Court of the European Union clarifies VAT exemption conditions for members of a VAT group
On 10 June 2026, the General Court of the European Union in its judgment in Case T-444/25, ruled on the application of the VAT exemptions for healthcare and social welfare while services under article 132(1) (b) and (g) Directive 2006/112/EC (VAT Directive) within a VAT group established pursuant to article 11 of the VAT Directive. The case concerned a Dutch VAT group providing care services to persons with intellectual disabilities, where only some members of the group held the national recognitions required to benefit from the exemptions. The Court held that a VAT group may rely on the exemptions under article 132(1)(b) and (g) only where the services are supplied by a member of the group that itself satisfies all the conditions for exemption, including the requirement to be a duly recognised medical or social welfare body. According to the Court, the treatment of a VAT group as a single taxable person under article 11 does not remove the need to assess the exemption conditions relating to the status of the service provider at the level of the individual group member supplying the services. The judgment confirms that VAT exemptions for activities in the public interest must be interpreted strictly and cannot be extended solely because the supplier forms part of a VAT group.
EU ministers advance digital simplification agenda
On 9 June 2026, EU ministers discussed the state of play of the Digital Omnibus package and reached a general approach to the European Business Wallet (EBW) proposal during a meeting of the Transport, Telecommunications and Energy (TTE) Council. The discussions formed part of the EU’s broader competitiveness and simplification agenda, aimed at reducing administrative burdens for businesses operating across the Single Market. The Cypriot Presidency reported progress on the Digital Omnibus, including proposals to simplify reporting obligations and establish a single-entry point for cyber incident reporting. Ministers also discussed the proposed European Competitiveness Fund (ECF), which is intended to support investment in strategic technologies, digital skills and cybersecurity. The Council’s agreement on the European Business Wallet is expected to facilitate digital interactions between businesses and public authorities and support the implementation of the “once-only” principle, including in the context of the proposed 28th regime (EU Inc.) framework. Several Member States emphasised the importance of interoperability with existing national systems and the need to avoid duplication.
MEPs to discuss the VAT reverse charge mechanism and corporate tax policy on 25 June 2026
On 25 June 2026, the European Parliament’s Subcommittee on Tax Matters (FISC) will hold a meeting in Brussels to discuss several ongoing tax policy files. According to the draft agenda, Members will hear a presentation of a European Parliamentary Research Service (EPRS) study on the VAT reverse charge mechanism and consider a draft own-initiative report on the future of the mechanism, prepared by rapporteur Pierre Pimpie (PfE, France). The FISC committee will also consider amendments to the draft report on the EU’s approach to corporate tax policy in a changing international environment, prepared by rapporteur Kinga Kollár (EPP, Hungary). In addition, the Subcommittee will hold a joint exchange of views with the European Public Prosecutor’s Office (EPPO), the European Anti-Fraud Office (OLAF) and Eurofisc on cooperation in the fight against VAT fraud in the European Union.
EPRS reviews Commission impact assessment on EU Inc. proposal
On 9 June 2026, the European Parliamentary Research Service (EPRS) published an initial appraisal of the European Commission’s impact assessment accompanying the proposal for a 28th regime corporate legal framework (“EU Inc”). The briefing concludes that the impact assessment provides a clear intervention logic, identifying three main challenges facing start-ups and scale-ups: fragmented corporate rules, burdensome procedures throughout the company lifecycle and an investment environment that remains insufficiently attractive. EPRS notes that the Commission assessed seven sets of policy options and that the preferred package is expected to improve regulatory coherence, simplify cross-border business operations and increase investor confidence. According to the appraisal, the impact assessment estimates that small and medium-sized enterprises could benefit from administrative burden reductions of between €328 million and €440 million over ten years, while the competitiveness assessment identifies positive effects on cost competitiveness, innovation and cross-border scaling. At the same time, EPRS observes that the impact assessment does not quantify certain expected benefits, including the potential increase in investment flows to European companies, and notes the absence of operational objectives and a subsidiarity grid.
OECD issues technical guidance for first GloBE information return filings
The OECD/G20 Inclusive Framework on BEPS has published new technical guidance on the use of the Global Anti-Base Erosion (GloBE) Information Return (GIR) XML Schema and related validation rules ahead of the first GloBE filing and exchange cycle in 2026. The GloBE Rules form the core of Pillar Two and are designed to ensure that large multinational enterprise (MNE) groups pay a minimum level of tax in each jurisdiction where they operate. The guidance addresses a number of technical issues identified in the GIR XML Schema and provides practical fixes, workarounds and temporary adjustments to validation rules to facilitate reporting by MNE groups and tax administrations. Among other measures, the OECD clarifies how certain data points should be reported where corresponding XML elements are currently missing, provides instructions for reporting specific GloBE elections and adjustments, and confirms that several validation rules should not be applied for the first filing cycle due to technical inconsistencies. The guidance also includes solutions for issues relating to covered taxes, the Undertaxed Profits Rule (UTPR), deferred tax adjustments and the treatment of percentage calculations that fall outside predefined reporting ranges. The OECD notes that the measures are intended to support the smooth implementation, filing and exchange of GloBE Information Returns pending future updates to the XML Schema.
Save the date: Celebrating 10 years of ETAF on 3 November 2026
