A Commission staff working document published on 13 July 2026, the Annual Report on Taxation 2026, reviews tax policy trends across all EU Member States based on data through 2024. The report finds that EU tax revenue reached 39.4% of GDP in 2024, driven primarily by higher labour tax receipts, which remain the main revenue source as governments increase them with lower political costs. Corporate income tax revenues have supported a shift toward capital taxation over the last decade, while consumption taxes lost ground: VAT gains did not offset a marked decline in environmental tax revenues. The report warns that population ageing may further affect revenue sustainability and composition.
Flash Eurobarometer results cited in the report show that citizens across the EU identify action against tax avoidance and evasion as the top tax policy priority. The report also notes that tax compliance is shaped by simplicity, tax certainty, filing support, trust in institutions, and fairness perceptions—not just enforcement. The Commission has proposed a comprehensive tax simplification package, including the taxation Omnibus and a recast of the Directive on Administrative Cooperation. Through the Technical Support Instrument and the Recovery and Resilience Facility, the Commission works with Member States to modernise tax systems.
The report highlights that EU tax systems face pressure from ageing populations, competitiveness needs, and geopolitical shocks, with labour taxes carrying the revenue burden while citizens demand simpler, fairer compliance and stronger anti-avoidance action. No prior coverage of this report exists in the available record.