The European Commission has presented a communication on how to move gradually from unanimity voting to the ordinary legislative procedure (where the European Parliament and the Council are co-legislators) in certain areas of shared EU taxation policy.

It is important to note, however, that the Commission has stated that it only wants to start a political debate on the issue with Member States and does not intent to harmonise tax rates or create new EU-level competencies. It has asked that EU leaders, the European Parliament, and other stakeholders assess the possibility of a gradual, four-step progression towards decision-making based on Qualified Majority Voting (QMV).

The four steps are as follows:

[As soon as possible]

• Step 1: measures that have no direct impact on Member States’ taxing rights, bases or rates, but are critical for combatting tax fraud e.g. that improve cooperation and mutual assistance between Member States, tax evasion, as well as administrative initiatives for EU businesses, e.g. harmonised reporting obligations.
• Step 2: measures primarily of a fiscal nature designed to support other policy goals e.g. fighting climate change, protecting the environment or improving public health.

[By the end of 2025]

• Step 3: areas of taxation that are already largely harmonised and which must evolve and adapt to new circumstances: VAT and excise duty rules.
• Step 4: other initiatives which are necessary for the Single Market and for fair and competitive taxation in Europe: the Common Consolidated Corporate Tax Base and the taxation of the digital economy.

A full press release can be found here.