SMEs call for simplification and clarity in the EU Taxation Omnibus proposal

January 21, 2026

SMEunited has called on EU policymakers to ensure that the proposed Taxation Omnibus initiative delivers real simplification and clarity for SMEs, highlighting the need to reduce administrative burdens and improve legal certainty across the European Union.

The European Commission’s proposal, adopted as part of its broader effort to modernise and streamline the EU tax framework, aims to simplify tax reporting obligations and improve the efficiency of tax procedures within the Single Market. By clarifying rules and reducing complexity, the initiative seeks to create a more business-friendly tax environment, particularly for SMEs operating across borders.

Simplification must deliver concrete benefits for SMEs

SMEunited emphasised that simplification must remain the central objective of the Taxation Omnibus package. The organisation warned that additional reporting requirements or unclear implementation could increase compliance costs, particularly for smaller businesses with limited administrative resources.

Reducing administrative burdens and improving clarity would allow SMEs to focus on growth, investment, and innovation rather than complex tax procedures. Ensuring consistent implementation across Member States will also be essential to strengthening the functioning of the Single Market.

Supporting cross-border activity and competitiveness

A simplified and more transparent tax framework could significantly improve the business environment for SMEs operating across borders. Legal certainty and streamlined procedures would facilitate compliance and reduce the risks associated with cross-border economic activity.

The European Commission’s proposal also aims to support digitalisation and modernisation of tax administration, contributing to more efficient interactions between businesses and tax authorities.

JEUNE highlights the importance of SME-friendly tax reform

JEUNE supports the European Commission’s objective of simplifying the EU tax framework and improving legal clarity for SMEs and entrepreneurs. For young entrepreneurs and startups, navigating complex tax systems across different Member States remains a significant barrier to growth and cross-border expansion. Simplified procedures, reduced compliance burdens, and increased legal certainty are essential to fostering entrepreneurship and enabling startups to scale within the Single Market. Ensuring that tax reforms remain practical, proportionate, and digital-friendly will be key to strengthening Europe’s entrepreneurial ecosystem.

A key step toward a more efficient Single Market

Improving tax clarity and simplifying reporting obligations can play a crucial role in strengthening Europe’s competitiveness and supporting SME growth.

Ensuring that the Taxation Omnibus initiative delivers real simplification will be essential to creating a more efficient, transparent, and SME-friendly tax environment across the European Union.

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