Explainers

Fighting tax fraud and avoidance is primarily the member states’ responsibility. Rules agreed at EU level promote cooperation on tax matters and help countries manage cross-border issues in order to ensure the functioning of the EU single market.

Goods imported to the EU from the rest of the world are subject to tariffs that follow the rules and principles of the World Trade Organization.

The EU list of non-cooperative jurisdictions for tax purposes is part of the EU’s work to fight tax evasion and avoidance. It is composed of countries which have failed to fulfil their commitments to comply with tax good governance criteria within a specific timeframe, and countries which have refused to do so.

The EU is working on the revision of the energy taxation directive which is expected to play an important role in the EU’s efforts towards a greener future.

To be considered cooperative for tax purposes, third-country jurisdictions are screened on a number of criteria, established by the Council in 2016. Those criteria relate to tax transparency, fair taxation and anti-BEPS measures.