Simplification has become the watchword of this Commission’s economic agenda, and taxation is the latest field to feel its pull. On 24 June 2026 the executive adopted a package it billed as landmark, pairing a Taxation Omnibus with a full recast of the Directive on Administrative Cooperation, the framework that governs how national tax authorities share information about taxpayers across borders.
The headline claim is a reduction in paperwork rather than a change in what companies owe. The recast folds nine successive versions of the cooperation directive, layered on one another over more than a decade, into a single consolidated instrument. Each earlier revision added new reporting obligations, from bank account data to digital platform income, without tidying up what came before. The result was a thicket of overlapping definitions and cross-references that tax departments and administrations alike found hard to navigate. Codifying the lot into one coherent text, the Commission argues, will improve legal certainty without loosening the substance of the rules.
The numbers attached to the exercise are striking. The package is projected to cut compliance costs for business by roughly 7.9 billion euros, a figure the Commission places at the heart of its competitiveness pitch. The logic is that firms operating in several member states spend disproportionately on interpreting divergent requirements, and that money saved on lawyers and filing systems can be redirected to productive investment. Frontloaded simplification measures would take effect by 2028, with the remainder, including provisions meant to make the directive function more effectively, arriving by 2030.
That phasing matters, because tax files in the Union move slowly. Direct taxation requires unanimity among all member states in the Council, a threshold that has stalled or diluted many ambitious proposals before. A simplification package carries a better chance than most, since few governments want to be seen defending needless red tape, but unanimity still hands any single capital a veto over details it dislikes. The distinction between consolidating existing obligations and quietly narrowing them will be scrutinised closely by tax justice campaigners, who worry that a drive for lighter burdens could erode the transparency gains won over the past decade.
There is also a question of sequencing against the Union’s other tax reforms. The VAT in the Digital Age package, adopted in 2025, is already rolling out real-time digital reporting and platform obligations through the 2030s. Businesses now face a decade of overlapping transitions, some adding requirements and others stripping them away. Whether the net effect genuinely feels simpler on the ground, rather than merely simpler on paper, will depend on how cleanly the new consolidated text interacts with reforms still in mid-implementation.
For now the proposal sets a marker. By promising billions in savings and a single rulebook in place of a tangle of amendments, the Commission has framed tax administration as a competitiveness lever rather than a purely fiscal one. The harder work, persuading twenty-seven finance ministries to agree unanimously on where simplification ends and substance begins, is only beginning.




