The European Commission has launched two public consultations and created an expert group to gather ideas on how to tackle any tax obstacles that hinder the cross-border activity of individuals in the Single Market.

At the same time, the Commission has launched new web pages aimed at providing useful tax inform-ation to individuals who are active across borders.

Algirdas Šemeta, Commissioner for Taxation, said: “The strength of the European Union relies on people being able to move freely within the Single Market to work, study and retire. It is essential that everyone is tax-compliant, but tax compliance must be made easy too. This needs particular attention in cross-border situations, where double taxation must be eliminated.”

Statistics show that there are many EU citizens who move across borders to work or retire or purchase goods or invest in assets in other countries. Around 14.1 million EU citizens – 2.8 per cent of the total EU population – reside in an EU member state other than their own and almost 30 per cent of EU citizens purchase offline and online goods from businesses based in other member states. These situations may mean that taxpayers face complex tax declaration obligations in more than one member state and double taxation.

The expert group will look principally at elements of direct taxation that may affect an individual’s cross-border activity in the Single Market. Personal income taxation and inheritance taxation will be particularly focused on. However, if need be, the group may also look at other taxes that affect the mobility of persons, such as the taxation of vehicles and the taxation of e-commerce.

One of the public consultations covers tax problems faced by citizens who are active across borders. The other consultation focuses on problems related to inheritance taxation.