On 24 June 2026, the European Commission published a proposal to recast the Directive on administrative cooperation in the field of taxation (DAC) into a single legal act, aiming to simplify and clarify rules for Member States and businesses without lowering protection against tax fraud, evasion or avoidance. The proposal consolidates the original DAC and its eight amendments (DAC1 to DAC9) into one text, reducing complexity and improving usability for all stakeholders across the EU.
it removes reporting requirements with limited added value under DAC6, addresses overlapping obligations for DAC4 and DAC9, and adjusts thresholds for DAC7 reporting on sale of goods. These changes align with the EU's burden-reduction targets of at least 25% for all companies and at least 35% for SMEs, as set in the Commission's Communication on implementation and simplification. The proposal also updates references to the new EU Anti-Money Laundering framework (Directive (EU) 2024/1640) to ensure continued access for tax authorities to registers and due diligence documentation. Additionally, it allows optional use of the European Unique Identifier (EUID) for verified taxpayer identification, supporting the 'once-only' principle for information submission.
Member States will act as joint data controllers, ensuring data storage complies with GDPR security measures and time limits; data exchange will use a secured electronic system with encryption. The legal basis remains Articles 113 and 115 TFEU; the proposal is a recast Directive, the only instrument available under Article 115 TFEU.
Policy orientations and trade-offs The proposal balances simplification with maintaining robust safeguards against tax abuse. By removing low-value reporting requirements, it reduces compliance costs for businesses, particularly SMEs, but may slightly reduce the volume of information available to tax authorities. The consolidation into a single act improves legal clarity and reduces the risk of inconsistencies across multiple amendments.
Impact on stakeholders - EU businesses: Reduced administrative burden from simplified reporting obligations, especially for SMEs, with potential cost savings from fewer overlapping requirements. However, businesses must adapt to the new consolidated framework and ensure compliance with updated thresholds. - National tax authorities: Benefit from clearer rules and continued access to anti-money laundering data, but face implementation costs for updating systems and training staff on the recast directive. - Tax advisors and intermediaries: May see reduced workload from the removal of certain DAC6 reporting obligations, but need to familiarize themselves with the consolidated text. - EU taxpayers: Indirectly benefit from more efficient tax administration and reduced compliance costs for businesses, which may lead to lower prices or improved services.
Expected institutional follow-up The proposal will now be examined by the Council of the European Union, which must adopt it unanimously after consulting the European Parliament. Member States will then have a transposition period to implement the directive into national law. The recast is expected to enter into force 20 days after publication in the Official Journal.