Explainers

The EU is reforming its customs union to make procedures more efficient, strengthen security measures and improve risk management across member states.

The EU is taking action to manage the rapid increase in the number of small parcels entering the single market, largely via e-commerce.

The European climate law makes reaching the EU’s climate goal of reducing EU emissions by at least 55% by 2030 a legal obligation. EU countries have adopted new legislation to achieve this goal and make the EU climate-neutral by 2050.

VAT is crucial for EU member states' revenues and the EU budget, yet VAT losses remain significant. The EU is working to ensure a harmonised system while tackling fraud and modernising VAT through digitalisation.

Tax rules for the digital economy which are based on the principles of tax good governance can help promote growth and, among other benefits, deliver on the green and digital transitions.

The EU is working to establish a new customs authority to strengthen cooperation between national customs authorities and support  the effective functioning of the customs union.

The EU customs union creates a single tariff area for all goods imported from outside the EU, allowing the goods to move freely between member states without customs.

EU legislation provides a common framework to ensure that excise duties are applied consistently across the Union. Member states introduce and collect excise duties individually. 

The EU’s rules on anti money laundering and countering terrorist financing protect its financial system and contribute to security and growth.

EU tax policy aims to ensure fairness and foster growth by harmonising taxation rules across member states, combatting fraud and adapting to global economic shifts. The Council is the sole legislator on EU tax matters.