Directorate-General for Taxation and Customs Union

The Directorate-General for Taxation and Customs Union (DG TAXUD) is a Directorate-General of the European Commission.^[1][2][3] The DG Taxation and Customs manages, defends and develops the customs union as a vital part of protecting the external borders of the European Union.^[4] It also co-ordinates taxation policy across the European Union.^[4]

Tax burden as a percentage of GDP in EU Member States in 2008, a topic relevant to DG TAXUD's policy scope.

Annual average change in environmental tax revenues versus labour tax revenues in EU Member States between 2002 and 2019, reflecting EU taxation policy trends.

Map illustrating the standard Value Added Tax (VAT) rates across the European Economic Area (EEA), which is a key policy area for DG TAXUD.

Area of competence

The Customs Union is an area of exclusive competence for the European Union, as established by Article 3(1)(a) TFEU. This Union, as defined in Article 28 TFEU, encompasses all trade in goods and mandates the abolition of customs duties between Member States, ensuring a unified approach to trade with the rest of the world through a Common Customs Tariff. Furthermore, Article 30 TFEU specifically prohibits all customs duties and equivalent charges within the Union, while Article 31 TFEU grants the European Commission the exclusive power to set the duties within the Common Customs Tariff^[5].

The European Union's competence in Taxation is focused on harmonisation, primarily through the Treaty on the Functioning of the European Union (TFEU).^[6] Article 113 TFEU serves as the core legal basis, granting the EU power to harmonize indirect taxes (such as VAT and Excise Duties) when necessary to ensure the proper functioning of the Internal Market. For certain forms of direct taxation and other measures impacting the single market, Article 115 TFEU allows the Council to adopt directives aimed at approximating national laws, enabling the EU to coordinate policies like anti-tax avoidance measures^[7].

Structure

The Directorate-General is presently organised into five directorates:^[8]

• Directorate A: Customs^[9]
• Directorate B: Digital Delivery of Customs and Taxation Policies^[10]
• Directorate C: Indirect Taxation and Tax Administration^[11]
• Directorate D: Direct taxation, Tax Coordination, Economic Analysis and Evaluation^[12]
• Directorate E: International and General Affairs^[13]

The department is headed by Director-General Mr Gerassimos Thomas, a Greek national. Since January 2022, Mr Thomas is supported by a Principal Adviser for Strategy and Economic Analysis Coordination.

Previously, the Directorate-General was organised into the following five directorates:^[14]

• Directorate A: Customs Policy, Legislation, Tariff
• Directorate B: Security & Safety, Trade Facilitation & International coordination
• Directorate C: Indirect Taxation and Tax Administration
• Directorate D: Direct taxation, Tax Coordination, Economic Analysis and Evaluation
• Directorate E: Resources and International Affairs

See also

• European Commissioner for Economy
• Customs union
• Taxation
• Single European Act
• General Agreement on Tariffs and Trade (GATT)