General tax policy

EU Fact Sheets 13-06-2024

Taxation is a prerogative of the Member States, the EU having only limited competences. As EU tax policy is geared towards the smooth running of the single market, the harmonisation of indirect taxation was addressed before that of direct taxation. Efforts to combat the problem of tax evasion and tax avoidance then followed. EU tax legislation must be adopted unanimously by the Member States. The European Parliament has the right to be consulted on tax matters; for budgetary-related issues it is even co-legislator.