EU co-operation on tax policy

• to improve the function of the Internal Market, thereby making it easier for companies to buy and sell products and services across EU Member States 
• to reduce unfair and harmful tax competition between countries

Within the realm of the Treaty, the individual EU Member State is responsible for it’s tax policy as well as the general financial and structural policy. The EU Member States unanimously decide to harmonize taxes in order to secure the function of the Internal Market.

The indirect taxes (VAT and levies) are primarily subject to harmonization – typically through common minimum rates. With regard to direct taxes (corporate tax and income tax) the EU Member States mainly co-operate through sharing information on tax policies.